Indian IPO

Gulf Oil Corp plans public issue of Petromin

2010-06-08T21:51:00.001+05:30

The Hinduja Group is looking to invest between USD 10 billion and USD 15 billion over the next five years to develop power projects with 10,000 megawatts (MW) generation capacity, said Gopichand Hinduja, Chairman, Hinduja Group.

Currently, the Group is setting up a 1,000 MW thermal power plant in Visakhapatnam. In addition, the group is also in talks with the governments of Gujarat, Uttar Pradesh and Maharashtra to set up power projects, Mr Hinduja said.

The group, which has business interests in diverse sectors such as commercial vehicles, banking, lubricants, and so on, recently acquired a European private bank. It also announced a joint venture between its group company Ashok Leyland and Nissan Motors for manufacturing and marketing light commercial vehicles.

Speaking to reporters in Mumbai on Wednesday, Mr Srichand Hinduja said, “We have not only made good progress in each of our verticals, but also achieved organic growth.”

Gulf Oil Corporation, another Hinduja-promoted company, plans to raise between USD 800 million and USD 1 billion through a public listing of Petromin, the Saudi-Arabia based-lubricant company it acquired, said Mr Sanjay Hinduja, President, Hinduja Group of Companies. The IPO, which is likely by the end of this year, will dilute up to 30 per cent of Gulf Oil's stake in Petromin.

The group plans to expand KBL (the private bank acquired from Belgium-based KBC Group) to emerging market countries such as India, West Asia, South America and North America.

“We are in talks with several financial institutions in India to see how we can collaborate with them. There is a possibility that we may tie up with IndusInd Bank,'' Mr Hinduja said.

The Hinduja Group is one of the promoters of IndusInd Bank with a stake of around 20 per cent.

Other plans of the group include development of two real estate projects in Bangalore and one in Hyderabad, through another group company, Hinduja Realty Ventures.

The company has a land-bank of over 2,300 acres, and would be entering into joint development agreements with the land owning entities, said Mr Ravinder Babbar, Chief Operating Officer, Hinduja Realty Ventures.

Punjab & Sind Bank to file DRHP next week

2010-06-08T21:50:00.001+05:30

Punjab & Sind Bank plans to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) next week, report CNBC-TV18.

The company is looking to raise Rs 500 crore through its initial public offering (IPO). SBI Caps, Enam, ICICI Securities are the the book runners for the IPO.

Standard Chartered's India Issue To Open May 25 - Bankers

2010-05-11T19:16:00.001+05:30

Standard Chartered PLC (STAN.LN) is set to open its sale of Indian depository receipts to raise $550 million-$600 million May 25, two investment bankers involved in the deal said, as the Asia-focused bank moves closer to becoming the first foreign company to list in the country.

RCap shifts focus to five businesses

2010-05-09T20:32:00.001+05:30

Marking a clear shift of strategy, Reliance Capital Ltd, or RCap, has decided to drastically reduce its dependence on the sale of securities to shore up earnings and instead focus on five core businesses—asset management, brokerage, consumer finance, life and general insurance.

New businesses, including private equity (PE), mortgages and asset reconstruction, remain peripheral.

Besides, it will also divest its stake in some of the core businesses to raise return on equity. The divestment process could begin as early as this quarter.

The flagship financial services firm, owned by the Reliance- Anil Dhirubhai Ambani Group, is looking to close at least two divestment deals in 2011 fiscal, besides ensuring that both its life and general insurance businesses break even—a critical milestone for RCap if its “core businesses” have to turn in sizeable profits.

Speaking to Mint hours after a conference call for analysts on Monday, RCap’s chief executive Sam Ghosh said: “We earlier made most of the profits from our investments to make sure there was dividend payout” for the shareholders. The objective now is earn-it-and-distribute-it and ensure “superior return” to shareholders.

“We now want to generate most of the profits on a sustainable basis from our core businesses,” he added, referring to RCap’s interests in asset management, brokerage, consumer finance, life and general insurance. The key word is “driving profitability”.

The numbers bear out this strategic change. A 3 May note put out by Alchemy Share and Stock Brokers Pvt. Ltd’s sector analyst Shashin Upadhyay has analysed that the “finance and investment” segment in the last quarter contributed merely 14.1% to overall revenues, down from 16.1% in the immediately preceding quarter and 38.7% in the March quarter in 2009.

Graphic: Ahmed Raza Khan / Mint

Graphic: Ahmed Raza Khan / Mint
RCap’s 2009-10 net profit, reported on Saturday, fell 57% to Rs435 crore and by nearly 80% for the January-March quarter to Rs65 crore—making it the fifth straight quarterly dip. Revenue rose 3% to Rs6,141 crore.

Ghosh, however, remains unperturbed by the numbers. He agrees the period is transitional, but “not painful”, saying this was in line with the carefully thought-out strategy.

RCap lost 0.84% to close at Rs733.05 even as the benchmark index of the National Stock Exchange, the 50-stock Nifty, closed at 5,222.75 points, 1.05% lower. In the last year, the Anil Ambani firm has gained 29.53%, lagging the 43% gain of the Nifty, of which RCap is a constituent.

The core verticals, the company anticipates, should double this year and touch Rs1,000 crore in the next few years. Meanwhile, both life and general insurance businesses are expected to break even this fiscal.

“The focus is on the core businesses and we will do whatever needs to be done to make them profitable,” Ghosh said.

“There will be a divestment announcement in the next one quarter and by the end of this fiscal, we should close two divestment deals. This will reduce our capital investment and improve our returns on equity,” Ghosh explained, but refused to comment on which specific verticals could sell a stake, to whom and at what valuation.

RCap’s life insurance venture is expected to sell 26% stake to the Zurich-based reinsurer, Swiss Reinsurance Co. Ltd while its general insurance unit—a laggard in RCap’s portfolio that nearly doubled its losses last year—is also in talks to hammer out a deal to partner British firm RSA Insurance Group Plc after Sundaram Finance Group exits the Royal Sundaram Alliance Insurance Co. Ltd.

The claims under the health insurance portfolio are a drag on the general insurance segment’s profits, but RCap says it has “significantly reduced its exposure to group mediclaim products” and has received the insurance regulator’s nod to re-price its retail product some 150% higher.

RCap has also started a spate of new businesses such as corporate lending, mortgages, PE, merchant banking, asset reconstruction and a commodity spot exchange.

These businesses, with less than 5% contribution to overall revenue and even less to profit, were currently supplementary to RCap. None of these businesses, started in the last 12-18 months, have really taken off.

RCap’s corporate loan book is now around Rs2,500 crore and that of mortgages Rs2,300 crore. The PE fund, which has raised about Rs1,000 crore from domestic institutional investors and high networth individuals, wants to raise funds overseas.

It has also started buying and selling government bonds in a small way as it prepares to set up a primary dealership. Its application seeking a licence for primary dealership has been pending with the Reserve Bank of India (RBI).

RCap also wants to set up a bank. RBI will release a discussion paper on new bank licensing norms by July and an external committee will be appointed to vet the applications.

A Mumbai-based analyst with a domestic brokerage said he was having trouble crunching numbers and arriving at a sum-of-the-parts valuation for RCap as the company was “restructuring and reorganizing so much, but RCap (and its profits) is certainly through the trough”.

The restructuring seems far from over, especially with the divestments, a probable initial public offering for the life insurance business and a banking licence that RCap is avidly looking for as soon as RBI clearly spells out who can make the cut.

Reliance Capital PE’s first deal is in education

2010-04-29T19:06:00.001+05:30

In its first investment, the private equity (PE) arm of Anil Ambani-controlled Reliance Capital Ltd has purchased a stake worth Rs100 crore in Pathways World School, a group of schools for students from kindergarten to Class XII. The size of the stake acquired by Reliance Equity Advisors (India) Ltd hasn’t been disclosed.

Reliance Equity Advisors is seeking to tap annual growth in the education sector that its chief executive officer Ramesh Venkat estimates at 50-60%.

A recent report by education-focused PE fund Kaizen Management Advisors Pvt. Ltd has estimated that the so-called K-12 segment (kindergarten to Class XII) is a $20 billion (around Rs89,000 crore) business.

“Also, there are a lot of government initiatives and policy changes which are attracting investment in the sector,” Venkat said.

The ministry of human resource development under Kapil Sibal is aggressively pushing reforms in the education sector while parents are increasingly seeking to put their children in private institutions regardless of the high fees they charge.

Pathways, which offers the International Baccalaureate curriculum, will use this money to expand its present capacity and set up two more schools in the national capital region (NCR) centred on New Delhi, said Prashant Jain, promoter-director of Pathways, which is also looking to diversify into higher education and is working on a university model.

“The plans are still being drawn and the land for this has already been purchased,” said Jain.

The cash raised from the stake sale will fund Pathways’ expansion plan, for which the company has been seeking to raise a total Rs350 crore. It plans to raise the remaining Rs250 crore through debt funding.

Long-term plans include expanding into other parts of India and venturing abroad as well as making acquisitions. According to its website, it runs one school in the NCR and is building two more.

Venkat said Reliance Equity Advisors wanted to invest in an institution that was “reasonably diverse” with interests in schools and higher education.

“In Pathways, their existing expansion plans for the next two-three years has scale of a different order,” he said.

According to the report published by Kaizen Management in January, the K-12 segment consists of approximately one million schools. Of an estimated 343 million children who qualify for the K-12 segment, only 219 million are enrolled.

The K-12 segment is characterized by high upfront capital investment but relatively low operating expenses. Successful schools catering to the segment have significant pricing power, says the report.

“There are approximately one million schools in India, of which 900,000-plus are government-run and have poor quality infrastructure. So this space needs private investment,” said K.K. Iyer, partner and managing director of India Equity Partners, which invested Rs172 crore in IL&FS Education and Technology Services Ltd.

Some of the recent investments in the education space include Rs200 crore by Premji Invest—the investment venture of information technology company Wipro Ltd‘s chairman Azim Premji—in Manipal Education, Rs60 crore in Resonance Eduventures and Rs25 crore in IMS Learning Resources Pvt. Ltd by Milestone Religare Investment Advisors Pvt. Ltd and Rs100 crore in FIITJEE by Matrix Partners India.

Shriram EPC unit files IPO papers

2010-04-23T20:08:00.001+05:30

Shriram EPC said on Wednesday its associate firm, Orient Green Power, has filed for regulatory approval for an initial public offering of shares.

Shriram EPC owns 35.8% in Orient Green Power, which producers electricity from renewable sources, it said in a statement to the stock exchange.

JM Financial, Goldman Sachs and UBS Securities are the managers to the issue, it added.

RBI approves Punjab & Sind Bank's IPO plan

2010-04-23T20:07:00.001+05:30

The Reserve Bank of India has approved initial public offering (IPO) plan of Punjab and Sind Bank, reports CNBC-TV18 quoting government source.

CNBC-TV18 also learnt that Finance Ministry will approve Punjab & Sind's IPO plan in the next 15 days and this IPO is likely to hit markets by June-July 2010.

The bank aims to raise Rs 500 crore via IPO.

On April 21, the Finance Ministry said all banks needed RBI okay for IPO.

Jaypee Infratech IPO to open on Apr 29

2010-04-23T20:06:00.001+05:30

Jaypee Infratech, a part of Jaypee Group, is entering capital market with a public issue on April 29, 2010, reports CNBC-TV18.

Infrastructure development company has fixed the price band for issue at Rs 102-117 a share and the issue will close on May 4. Retail investors will get shares at 5% discount to issue price.

The company is engaged in the development of the Yamuna Expressway, which is a 165-kilometre access-controlled six-lane concrete pavement expressway along the Yamuna river, with the potential to be widened to an eight-lane expressway, and related real estate projects.

Jaypee Group incorporated this company on April 5, 2007 as a special purpose company to implement the concession. This concession also included the right to develop 25 million square metres (approximately 6,175 acres) of land along the Yamuna Expressway at five locations for residential, commercial, amusement, industrial and institutional purposes.

The issue consists of fresh issue aggregating up to Rs 1650 crore and an offer for sale of 6 crore equity shares by Jaiprakash Associates (JAL). JAL owns 99.1% of equity shares of company.

Proceeds raised from the fresh issue will be partially used for financing the Yamuna Expressway Project while money from offer for sale will be received by JAL.

The book running lead managers to the issue are Morgan Stanley India Company Private Limited, DSP Merrill Lynch Limited, Axis Bank Limited, Enam Securities Private Limited, ICICI Securities Limited, IDFC – SSKI Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited. Karvy Computershare Private Limited is the registrar.

Kurl-on likely to hit the bourse in 8-12 months

2010-04-10T19:18:00.001+05:30

Mattress maker Kurl-on has said it is likely to hit the capital market in next 8-12 months as a part of its expansion plans.

Besides branching into home décor retailing, the company also plans to partner with various home retailers to expand its shop-in shop concept.

“The sentiment in the market is good. We are planning to go ahead with our listing process in the next 8-12 months,” T Sudhakar Pai, Chairman and Managing Director Kurl-on, told Business Line. Earlier, the four-decade-old company had shelved its plans to go public last year following the economic downturn.

This year, Kurl-on commenced operations of its Rs 14 crore manufacturing facility for mattress and pillows. “We have developed a range of products to cater to a large consumer base. Now, we have mattresses ranging from mere Rs 1,700 to Rs 1 lakh on the upper bracket,” he said.

Kurl-on has a high brand recall and enjoys over 50% market share in the mattress category. The company also enjoys a high institutional sale by catering to one and two-star hotels.

“By developing low priced mattress for the market, we have managed to weed out competition from the fakes in the unorganised category. Out of 100 mattresses sold as Kurl-on, 70 are fake,” Mr Pai said.

Retail strategy

Kurl-on had posted a turnover of Rs 415 crore for the fiscal year ended March 31, 2010.

Speaking on the retail strategy, Pai said the company has tied up with major home retailing ventures such as Home Town, @ Home and Home Stop to set up shop-in shops. “We would like to expand our retail footprint wherever there is an opportunity.”

Kurl-on has set up its own retail concept Kurl-on Nest to display its entire range of products. Besides retailing mattresses, it will also be retailing bed and bath linen, apart from upholstery and furniture.

Speaking on furniture retailing, he said the company will be contract manufacturing its furniture range. “We will leverage on our design team who will customise products for the Indian market,” he said adding the company is looking to corner 15% of the Rs 30,000 crore home retailing market with this venture.

ICOMM Tele looks to raise 200Cr rupees in IPO

2010-04-09T20:02:00.001+05:30

The Hyderabad-based EPC firm is backed by Kotak SEAF and Tano Capital.

Kotak SEAF India Fund and Tano Capital-backed engineering, procurement and construction company ICOMM Tele is looking to raise Rs 200 crore through its maiden public issue. The private equity investors are staying put having invested two years ago.

Kotak SEAF-backed India Growth Fund had invested Rs 70 crore in Feb’08 and it currently holds 10.2% stake with an average cost of purchase at Rs 172.23. Tano had purchased shares from the promoters around the same time and it currently owns 5.1% in the company.

The issue comprises fresh issue besides part sale of shares by the promoters. Incidentally, both the private equity investors have entered into a sale agreement to sell undisclosed stake to the promoters or the employee welfare trust.

One of the early investors in the company was India Private Equity Fund that put in around Rs 56.25 crore way back in 1996, arguably one of the earliest PE/VC deals in the country. However, IPEF does not figure among the current shareholders which means it exited few years ago by selling out to the promoters.

The Hyderabad-based company is promoted by 34-year-old Sumanth Paturu and family. For the 15-month period ended September’09 the company had total income of Rs 913 crore with net profit of Rs 25.1 crore as against total revenues of Rs 1,070.8 crore with net profit of Rs 75.47 crore for the twelve months ended June’08.

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YOU Broadband & Cable plans Rs 360 crore IPO

2010-04-09T20:01:00.001+05:30

YOU Broadband and Cable India, cable broadband service provider, proposes to enter capital market with a public issue to raise around Rs 360 crore. This is the third company from the broadband space approaching IPO route since October 2009; first two were Den Networks and Hathway Broadband.

YOU Telecom (Mauritius) holds 82.44% stake in the company, 8.27% is with YOU Telecom Employee & Welfare Trust and 4.41% is with Bennett Coleman & Company.

The company commenced operations in 2001 and currently provides high-speed broadband cable internet services to residential and enterprise segment customers across 11 cities in India. As of September 30, 2009, it owned and operated over 990 kilometers of fiber optic cable and over 4,100 kilometers of trunk coaxial cable network, supported by 11 NOCs. As of September 30, 2009, its residential broadband internet service subscriber base aggregated approximately 200,779 customers.

It intends to use issue proceeds for capital expenditure in connection with broadband business (of Rs 1,57.39 crore); acquisition of additional equity shares in Digital Outsourcing Private Limited (Rs 12.83 crore); investment in Digital Outsourcing Private Limited by way of providing loans and/or through purchase/subscription of an equity interest therein for purchase of set-top boxes, head-end equipments, software, other related equipment, and acquisition of customers in connection with cable network services (Rs 85 crore); expenses towards working capital (Rs 17.1 crore ); repayment of outstanding loan (Rs 4.84 crore) and for general corporate purposes.

The company has been loss making since last five financial years. For the period of six months ended on September 2009, it has reported loss of Rs 9.096 crore on total income of Rs 37.65 crore.

The book running lead manager to the issue is Edelweiss Capital Limited and Karvy Computershare Private Limited is the registrar.

Ravi Kumar Distilleries To Go Public; Files DRHP

2010-04-09T20:00:00.001+05:30

Ravi Kumar Distilleries Limited plans to raise funds through IPO by issuing 11.5 Mn equity shares.

The company plans to dilute 47.92% of its post issue capital.

The issue will be managed by Comfort Securities Pvt Ltd.

The funds will be used to expand the existing capacity of its manufacturing unit, instillation of re-distillation plant, part finance marketing and branding and for its working capital requirements.

Transaction Reference: DRHP filed with SEBI
Transaction Note

Ravi Kumar Distilleries Limited is a manufacturer of Indian Made Foreign Liquor under its brands and as well as tie-up arrangement with various liquors companies of India.

The company, incorporated in 1993, is promoted by R.V. Ravikumar. At present, the promoter and promoter group hold 100% stake in the company.

Radico Khaitan Ltd., Shashi Distilleries Pvt. Ltd., John Distilleries Ltd., Gemini Distilleries (Pondy) Pvt. Ltd., Mondovi Distilleries & Breweries Pvt. Ltd have tie ups with Ravi Kumar for manufacturing and marketing of their popular brands like 8 PM Rare Whisky, Radico Gold etc.

The expenditure on the unit is expected to cost around Rs 11 cr.

The company has a balance sheet size of Rs 53 cr. For the year ended March 09, Ravi Kumar Distilleries reported net profit of Rs 1.7 cr over a turnover of Rs 43 cr.

Commercial Engineers files IPO papers with SEBI

2010-04-09T19:59:00.001+05:30

Commercial Engineers and Body Builders Company has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer (IPO).

The issue consists of a fresh issue by the company aggregating upto Rs 170 crore and an offer for sale of 1,698,430 equity shares by New York Life Investment Management India Fund (FVCI) II LLC and Commercial Automobiles Private Limited.

Its business comprises of manufacturing vehicle bodies for commercial vehicles, refurbishment of wagons and manufacture of components for wagons, coaches and locomotives for the Indian Railways.

Kailash Gupta, Ajay Gupta and NYLIM hold 29.48%, 26.30% and 23.30% stake in the company.

Funds raised by offering fresh issue will be used for capital expenditure for the railway project; prepayment of identified loan facilities and general corporate purposes.

For the period of nine months ended on December 31, 2009, it has reported profit after tax of Rs 10.65 crore on total income of Rs 111.21 crore. It has debt of Rs 47.84 crore on its books till the same period.

The book running lead managers to the issue are ICICI Securities Limited and Edelweiss Capital Limited. Karvy Computershare Private Limited is the registrar to the issue.

C.Mahendra Exports seeks regulatory nod for IPO

2010-04-09T19:57:00.001+05:30

Diamond jewellery maker C.Mahendra Exports Ltd said on Thursday it has filed for regulatory approval of a planned initial public offering (IPO) of 15 million shares.

The firm plans to raise funds for setting up of a diamond processing unit at Gujarat Hira Bourse, special economic zone near Surat and a jewellery manufacturing unit in Mumbai, it said in a statement to the exchange.

It will also use the proceeds for setting up retail outlets and in brand development, it said.

Yes Bank and Anand Rathi Advisors Ltd are the book running lead managers for the proposed IPO.

Raheja Universal files DRHP for Rs 864 cr IPO

2010-04-02T17:51:00.001+05:30

A Mumbai-based realty firm Raheja Universal has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi). It is looking to raise upto Rs 864 crore through this issue.

The company is considering pre-initial public offer (IPO) placement of up to 65 lakh equity shares aggregating upto Rs 200 crore with various investors.

For the period of six-months ended on September 30, 2009, the company reported net loss of Rs 11.97 crore and total income of Rs 358.74 crore. It has debt of Rs 885.69 crore on its books.

It had a total unconsolidated debt of Rs 673.4 crore and as of February 2010, 63% of unconslidated debt was with one lender.

The company intends to use the issue proceeds for construction and development expenses of RICC-I –Tower 1 (Rs 315 crore for this project), a commercial Ongoing Project; acquisition of land and/or land development rights (Rs 175 crore); pre-payment and/or re-payment of certain loans availed by company (Rs 158.5 crore); and general corporate purposes.

Raheja Universal is one of the leading real estate development companies in India with operations primarily in the Mumbai Metropolitan Region. It currently owns or holds development rights for 103.48 million sq. ft. of developable area of which saleable area is 70.19 million sq. ft. Residential projects represent 59.78 million sq. ft. developable area and 44.08 million sq. ft. saleable area. Commercial projects represent 43.70 million sq. ft. developable area and 26.11 million sq. ft. saleable area.

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

Standard Chartered to list Indian Depository Receipts in India

2010-03-30T13:29:00.001+05:30

Standard Chartered PLC considering to issue and list Indian Depository Receipts in India, making it the first overseas company to do so there.

It said on its website on Tuesday, March 30 the IDRs represent underlying new ordinary shares in the banking group.

Standard Chartered, which is also listed in Hong Kong, said it had filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India. The listing of IDRs is subject to market conditions and further regulatory approvals.

Standard Chartered group chief executive Peter Sands, commenting on the public filing of the DRHP, said: “Our intention to be the first company to list IDRs demonstrates how important India is to Standard Chartered.

"India is one of our largest and fastest-growing markets and achieved over USD1 billion in profits in 2009. We have a 150-year heritage in India. This is a unique opportunity to raise our profile and allow investors in India to participate in our future."

On the rationale for the IDR issue, it said the banking group had demonstrated a consistent track record of sustained financial performance across our markets in Asia, Africa and the Middle East.

"2009 was the seventh consecutive year of record income and profit, delivering compound annual growth rates of 19 per cent in income and 22 per cent in profit over that period. The company’s significant operations in the Asia region accounted for over 75% of its US$5.15 billion total profit before taxation for the year ended Dec 31, 2009," it said.

Standard Chartered said the listing of IDRs – expected to be the first by an overseas company - would be an unequivocal demonstration of the company’s commitment to India.

This move would facilitate a step change in market visibility and brand value in one of its key markets by significantly increasing the Company’s profile in India. India is one of Standard Chartered’s key Asian markets - generating over US$1 billion in profit.

"The listing provides Indian residents with an opportunity to invest in the company and participate in its growth," it said.

It appointed UBS Securities India Private Ltd and Goldman Sachs (India) Securities Private Ltd (as global coordinators); and JM Financial Consultants Private Limited, DSP Merrill Lynch Ltd, Kotak Mahindra Capital Co. Ltd and SBI Capital Markets Ltd as book running lead managers.

It appointed its STCI Capital Markets Ltd as a co-book running lead manager.

SKS first microfinancier to float IPO

2010-03-27T10:17:00.001+05:30

SKS Microfinance Ltd, the country’s largest microfinance company, plans to raise Rs 1,100 crore ($250 million) through an initial public offering (IPO).

As per its draft offer document filed with the Securities and Exchange Board of India, the issue comprises 1.67 crore shares, accounting for 21.6% of the company’s fully diluted post-issue capital. This includes a fresh issue of 0.74 crore shares and an offer for sale of 0.93 crore shares by certain selling shareholders.

Mauritius Unitus Corporation and Sequoia Capital India are among the shareholders looking to sell shares through the issue.

According to the offer document, Sequoia, which has been an early investor in companies such as Google and Yahoo, started buying stake in SKS in March, 2007 at Rs 49.77 a share. It plans to sell about 4 million shares, or less than a third of its stake, through the IPO.

At least 60% of the IPO shares will be available for institutional investors.

Net proceeds from the fresh issue would be used to augment the future capital requirements of the company arising out of growth in its business.

The book running lead managers to the issue are Kotak Mahindra Capital, Citigroup Global Markets India and Credit Suisse Securities (India).

The company is to be listed on the National Stock Exchange and the Bombay Stock Exchange.

The company, founded by former McKinsey & Co management consultant Vikram Akula, lends to the rural poor, especially women, on a for-profit basis.

It received a non-banking finance company licence from the Reserve Bank of India in 2006 and currently has 5.3 million customers. Going by an October, 2009 report by Crisil, it is India’s largest microfinance company by value of loans outstanding, the number of borrowers and number of branches. It had 24 regional offices and 1,627 branches spread across 19 states as of September 30.

The market for the issue is expected to be strong going by the response to recent fundraising attempts by the sector.

Companies such as Grama Vidyalaya Microfinance Ltd, ESAF Microfinance Ltd and Navachetna Microfin Services have used various debt and equity options including securitisation and non-convertible debentures, drawing participation from asset managers such as Bajaj Allianz Life Insurance, ICICI Prudential Asset Management, Canara Robeco Mutual Fund and Religare Asset Management.

“There is a large population out there, which is not covered by the formal banking sector, which should be really helped by microfinance institutions. I believe there should be a great deal of enthusiasm for the sector, though the exact fundamentals would have to be examined before investment,” said Sanjeev Patni, president and head of institutional equities at Prabhudas Lilladher.

Mahindra First Choice looks at IPO in three years

2010-03-25T15:41:00.001+05:30

Mahindra First Choice Wheels, the company that was created by Mahindra & Mahindra for trading in used cars and is currently jointly owned by M&M, HDFC and a PE fund, is looking at an IPO in about three years, according to Rajeev Dubey, President (HR, After-market & Corporate Services), Mahindra & Mahindra.

He did not want to disclose the name of the PE, but earlier media reports have it that Phi Advisors, an India-based PE, picked up 10% in the company in 2008 for Rs 80 crore.

Mahindra First Choice Wheels is today a Rs 400-crore company. It would have sold over 18,000 cars in the current year, compared with 10,250 last year, and expects its sales to double next year.

Today, the company announced a tie-up with MyTVS, the services business arm of TV Sundram Iyengar & Sons, under which anyone who buys a car from Mahindra First Choice can avail himself of the ‘roadside emergency services' of MyTVS free of charge in the first year of the vehicle purchase.

MyTVS has a 2,500-strong service network in 1,400 towns and cities “which implies that we can reach out to customers in distress wherever they may be,” said R Dinesh, Joint Managing Director, TV Sundram Iyengar & Sons.

Shubhabrata Saha, Chief Executive Officer, Mahindra First Choice Wheels, noted that the dynamics of the used-car business was changing with customers opting to deal with organised players as opposed to local dealers. Proof of this is the fact that Mahindra First Choice's sales are growing 80-100% annually, while the market is growing around 20%. Saha said B and C class towns are seeing a lot of action which will “provide depth and penetration to our business.” He said these cities do not have organised players and consequently buyers and sellers go to brokers, who mostly do not have the same capabilities as an organised player — in terms of choice of models and bundling finance and other services.

These smaller cities and towns, therefore, are on Mahindra First Choice's radar. The company today has 118 outlets and intends to double it over the next year.

StanChart gets nod to file draft IPO prospectus: Sources

2010-03-23T21:48:00.001+05:30

Standard Chartered has received approvals to file its draft red herring prospectus with the Securities Exchange Board of India (SEBI), sources told CNBC-TV18. The bank has also received approval from the Reserve Bank of India.

However, Standard Chartered's board is yet to decide when to file its draft red herring prospectus and the quantum of fund raising.

On March 3, Jaspal Bindra, Standard Chartered's Asia CEO, told Reuters that Standard Chartered Plc expects to list in Mumbai in the first half of this year.

Greatship mulls IPO, to file DRHP in 2-3 months

2010-03-23T21:38:00.001+05:30

Greatship, the wholly-owned subsidiary of Great Eastern Shipping Company, today said it is mulling an initial public offer (IPO) and may file the draft prospectus with the market regulator Sebi in the next 2-3 months.

"The board of the company today approved that Greatship may consider approaching the public for an IPO. We are likely to file our Draft Red Herring Prospectus (DRHP) within three months," Greatship Managing Director Ravi K Sheth told PTI here.

The proceeds of the IPO would be used to fuel the company's expansion, he said, adding "we want to have a global footprint."

However, the size of the IPO and its timing will be subject to market conditions and obtaining the necessary regulatory approvals, Sheth said.

When asked how much was the company planning to dilute, he declined to comment.

It is, however, understood that the company might dilute up to 30 per cent. The company is also understood to have Barclays, Kotak and Edelweiss as bankers to the issue.

The timing of the IPO will be dictated by then-prevailing market conditions, Sheth said. The company was also open to other modes of raising finance, besides IPO, he said.

Greatship provides energy and offshore services to exploration and production operators internationally. The company was incorporated in 2002 and is based in Mumbai and Singapore.

Microsec Fin to enter capital mkt; files DRHP with Sebi

2010-03-23T21:37:00.001+05:30

Microsec Financial Services today said it is planning to come out with an initial public offer and has filed draft papers with market regulator the Securities and Exchange Board of India (Sebi) in this regard.

The company has filed its draft red herring prospectus (DRHP) with the Sebi for an IPO of 12.5 crore shares of Rs 10 each, at a price range to be determined through book building process, Microsec Financial Services said in a statement.

Microsec provides various financial products and services to various target clients. The issue constitutes 39.3 per cent stake.

The company intends to utilise majority of the proceeds towards the expansion of its financing business, it said.

The company is also raising funds to expand its network of branches and enhance existing technological capacities of the broking business, it added.

SBI Capital Markets is the sole book running lead manager to the issue.

Water treatment firm Va Tech Wabag files for IPO

2010-03-23T21:36:00.003+05:30

Va Tech Wabag, the country’s largest water treatment company, will soon debut on the stock exchanges. The Draft Red Herring Prospectus (DRHP) has been filed with Securities and Exchange Board of India (Sebi) and the initial public offer (IPO) may happen within six months.

The Rs 1,155-crore company is approaching the capital markets to accumulate money to bid for Build-Own-Operate and Transfer (BOOT) water treatment projects, and for acquisitions. It also wants to create information technology systems within the company.

“The retail portion of the IPO will be about 35 per cent. The primary issue is likely to be for Rs 123 crore. We are working out the details with bankers on the quantum of funds to be raised,” said S Varadarajan, a promoter and chief financial officer of Chennai-based Va Tech Wabag.

Enam Securities and IDFC Capital are lead managers for the issue.

The promoters — Rajiv Mittal, Amit Sengupta, Shiv Narayan Saraf and S Varadarajan — hold 37.45 per cent stake in the company. ICICI Venture, which was earlier holding 31 per cent stake in the company, had exited partially.

Some foreign institutional investors also hold a minority stake.

In 1999, the Austrian group VA Tech acquired the water business of Deutsche Babcock, operating under the Wabag brand name. Va Tech Wabag Ltd was formed in 2000 and six years later, the majority shareholding of the company was acquired by ICICI Venture and the promoters.

In 2007, Va Tech, the Indian subsidiary, had acquired its parent, Va Tech Wabag GmbH of Austria from Siemens for about $100 million

For the year ended March 31, 2009, the company had consolidated income and total profit after tax of Rs 1,155 crore and Rs 34.9 crore, respectively. Its order book on December 31, 2009, was Rs 3,171 crore.

Ambience gets Sebi's nod for Rs 1,300 cr IPO

2010-03-23T21:36:00.001+05:30

Realty firm Ambience today said it has received approval from the Securities Exchange Board of India (Sebi) to launch initial public offer (IPO) and is waiting for the right time to hit the capital market.

The company had filed the draft red herring prospectus (DRHP) in September last year to raise up to Rs 1,293 crore.

"We received clearance in February. We are waiting for the suitable and opportune time for the launch," Ambience Group Chairman Raj Singh Gehlot told PTI when asked whether the company has got the Sebi nod to bring IPO.

Besides Ambience, Emaar MGF and Lodha Developers have also got the Sebi's approval for their IPO but are yet to hit the market. Early this month, Emaar MGF had said that its board of directors are considering an opportune time to open our IPO.

While, many public offers including those of PSUs have managed to get fully subscribed the demand has not been much, particularly for big-ticket issues.

Ambience plans to dilute between 10 and 15 per cent to raise nearly Rs 1,300 crore through maiden public offer. It would utilise about Rs 475 crore to make part repayment of Rs 2,500 crore debt, while another Rs 470 crore would be deployed for constructions of existing and future projects.

About Rs 150 crore will be used for paying external development charges for some projects awarded by the Haryana government.

The Delhi-based firm has a land bank of 800 acres, of which about 100 acres are under development. It plans to develop the remaining land over the next 3-4 years.

Sahara may go in for an IPO to fund Pune franchise

2010-03-22T22:54:00.001+05:30

Sahara Group was the highest bidder at USD 370 million to bag Pune and Rendezvous Sports bid USD 333.33 million to get Kochi as the two new franchisees to make the Indian Premier League (IPL) a 10-team affair from the 2011 season. The Sahara Group had the option of choosing from Ahmedabad, Nagpur and Pune as their home, but the corporate from Lucknow picked Pune as its host city.

Commenting on the same, Subrata Roy, Managing Worker and Chairman, Sahara India Pariwar, said the company is in talks with two banks on funding the Pune franchise. "We have been approached by UK-based clubs, Indian companies for partnerships. We can also go in for an initial public offer if bank funding or partnerships do not work out."

Roy said it is difficult to talk about team composition at this stage.

He is awaiting nod from the Securities and Exchange Board of India (SEBI) for Sahara City's initial public offering. "We are definitely going ahead with the IPO. The timing is yet to be decided. We plan to raise Rs 3,000 crore from the Sahara City IPO."

Roy is open to offloading stake in Aamby valley. "We have been approached by companies from West Asia, US."

Speaking on the court case with Jet Airways, he said Sahara wants to settle this dispute out of court and have sent the former a proposal to the same.

UCO Bank plans follow-on offer to raise Rs 400 cr

2010-03-22T12:43:00.001+05:30

UCO Bank, according to its Chairman & Managing Director, S K Goel, has decided to raise capital by way of a follow-on public offer (FPO) instead of a Qualified Institutional Placement (QIP), the objective being to broadbase the shareholding.

The bank proposes to issue six crore equity shares at a face value of Rs 10 each. This, coupled with the premium, should help the bank raise about Rs 400 crore, Goel said pointing out that the offer would hit the market by end-May.

Earlier, the bank, at its extraordinary general (EGM) on March 2, had taken shareholder's approval to raise funds either through an FPO or QIP. The bank has already received the approval of its board, Government and the Reserve Bank of India for the FPO.

Though QIP was a cheaper route vis-à-vis FPO, the government favoured an FPO on the ground of broadbasing of ownership, unlike QIP where shares would be concentrated in a few hands, Goel said. “The cost for a QIP issue works out to less than one per cent while the same for an FPO is close to three per cent. However, FPO is broad based as compared to QIP,” he observed.

The proposed FPO, when completed, would bring down the government stake in the bank from 63.59% to 58.60%, he said.

UCO Bank, Mr Goel said, was hopeful of receiving capital infusion of Rs 500 crore from the government under the recapitalisation scheme by the end of this fiscal.

Persistent IPO clocks highest bid in 26 mths at 93 times

2010-03-19T19:58:00.001+05:30

The public issue of Pune-based software product development company Persistent Systems has received record subscription in 26 months.

It got overwhelming response from investors, especially qualified institutional investors (QIBs). Overall, the issue has been oversubscribed 93.16 times, as per data available on the NSE website.

Earlier, Future Capital Holding's issue was subscribed over 133 times, which opened during January 11-16, 2008, just before the subprime crisis.

The 54,19,706 equity shares IPO, which closes today, has received bids for nearly 50.5 crore shares.

The reserved portion of QIBs got subscribed 117 times and high networth individuals 100 times, reports CNBC-TV18.

The issue consists of a fresh issue of 41,39,000 equity shares and an offer for sale of 12,80,706 equity shares by Dr Shridhar Bhalchandra Shukla and Vijayalaxmi Shridhar Shukla and Ashutosh Vinayak Joshi.

The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share. Promoters' holding will be reduced to 38.83% from 43.31% post issue.

The company will received only Rs 128.31 crore from the issue while the rest of money will go to selling shareholders.

The objects of the issue are to establish development facilities; capitalise subsidiaries for establishing development facilities and meeting fit outs and interior design costs; procure hardware and fund expenditure for general corporate purposes.

It is an OPD specialty company, offering customers the benefits of offshore delivery. It designs, develops and maintains software systems and solutions, create new applications and enhance the functionality of customers‘ existing software products.

The book running lead managers to the issue are Enam Securities Private Limited and JP Morgan India Private Limited. Link Intime India Private Limited is the registrar.

Goenka Diamond plans IPO to raise up to Rs 145 cr

2010-03-19T19:48:00.001+05:30

Jewellery manufacturer and retailer Goenka Diamond and Jewels on Friday said it plans to raise up to Rs 145 crore through initial public offer for which it has fixed the price band between Rs 135 and Rs 145 per share.

"We plan to raise up to Rs 145 crore through our IPO. We will use the proceeds to set up jewellery manufacturing and diamond processing facilities in Mumbai and also expand our retail outlets in India," Goenka Diamond and Jewels Managing Director Nitin Goenka said in Mumbai.

The company plans to issue one crore equity shares with a face value of Rs 10 each. The issue will constitute 30.93 per cent of the fully-diluted post-issue paid-up capital of the company.

The issue opens on March 23 and will close on March 26. "We will invest at least Rs 7-8 crore to set up jewellery manufacturing and diamond processing facilities and another Rs 7 crore for opening new outlets. We will invest Rs 25 crore to expand our existing facility in Russia," Goenka said.

The company will require more than Rs 85 crore for working capital, he said.

"The company will scale up the number of outlets pan-India to 19 from the six stores by FY 2012. Out of 19 stores, the company will open 17 Ceres outlets and 2 G Wild stores in Tier I and Tier II cities," he said.

StanChart may file papers for $1b IDR issue by March-end

2010-03-17T23:31:00.001+05:30

Standard Chartered, which is planning to raise $1 billion through Indian Depository Receipts (IDR), is likely to file the draft red herring prospectus with the market regulator, Securities Exchange Board of India, by end of March. This will be the first ever IDR issue by any global company.

“We clearly intent to have an IDR offering and we are looking forward to raise up to $1 billion, depending on the market conditions,” Neeraj Swaroop, chief executive officer, Standard Chartered (South Asia) said at the sidelines of a microfinance conference organised by Ficci here on Wednesday.

“We could only have started the process for DRHP filing once the group’s annual results were made public — these were announced on March 3. This (the filing) could happen in the second quarter of 2010 subject to market conditions,” a bank official told Financial Chronicle.

IDR rules to be relaxed to boost participation

2010-03-17T22:03:00.001+05:30

The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) are likely to provide more flexibility to companies issuing Indian Depository Receipts (IDRs).

RBI is likely to allow banks to participate in these issues, something not allowed at present. In addition, a single institutional investor will be permitted to buy up to 15 per cent of the issue. The present ceiling is 5 per cent.

The moves are part of the review of the IDR policy, which has not been attractive enough for foreign companies. So far, only Standard Chartered Bank has evinced interest in taking the IDR route to raise capital.

In New Delhi, the bank’s South Asia CEO, Neeraj Swaroop, told reporters that Standard Chartered planned to raise between $500 million (around Rs 2,250 crore) and $1 billion (around Rs 4,500 crore) during the next quarter. “We remain keen to pursue our intent to have an IDR offering ... We are looking at quarter two (April-June 2010),” Swaroop said on the sidelines of an event on microfinance.

The offering was subject to market conditions and the bank would have to take a final decision, he said. The IDRs will be issued by parent entity Standard Chartered Plc.

Banks are among the latest set of investors to be allowed to invest in IDRs, with rules eased over the past few years to allow foreign institutional investors to participate. The Insurance Regulatory and Development Authority, however, does not allow insurers to invest in IDRs. In addition, Sebi has allowed 30 per cent reservation for retail investors.

Like American (or Global) Depository Receipts, through which Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India.

The government notified the IDR rules in 2004. Sebi norms, too, have been in place for some time. However, the rules are still evolving, with a number of clarifications and relaxations during the course of Standard Chartered’s interaction with the regulatory agencies.

Investment banks said Standard Chartered’s issue might hold the key for more issues in the future, though most investors abroad would not tap the route to raise capital. “It will be part of the overall brand-building exercise. Companies which want to be seen as local players and not foreign companies will opt for this route,” said an executive with an international bank.

According to Sebi guidelines, only companies that are listed in their home market for at least three years and have been profitable for three of the preceding five years can issue IDRs.

Shree Ganesh plans to raise Rs 375 cr via IPO

2010-03-17T20:31:00.000+05:30

Kolkata-based Shree Ganesh Jewellery House, an exporter of handcrafted gold jewellery, plans to tap the capital market through an initial public offer (IPO) to fund expansion plans.

The company, which also exports to West Asia, Singapore and Hong Kong, plans to issue 142,69,831 equity shares having a face value of Rs 10 each. Though the price band has not been revealed, sources said it could be priced between Rs 260 and Rs 275 a share, with the company raising Rs 375 crore at the higher end and Rs 360 crore at the lower end of the band.

Credit Suisse, which invested USD 20 million for about 11% equity stake in the company in March 2008, will offload a part of its holding for Rs 60 crore.

Umesh Parekh, Managing Director, Shree Ganesh Jewellery, said the company would invest Rs 150 crore to expand capacity at its jewellery manufacturing units at Mandal Pada and Domjur, besides setting up a modern manufacturing unit at Manikanchan SEZ, in Kolkata.

The company intends to set up a two-tonne capacity gold refinery unit with an investment of Rs 5 crore. The unit will recycle gold jewellery. The refinery would enhance profits by 3% to 4%, said Parekh.

“The country recycles about 200 tonnes a year of old jewellery, which passes through three to four intermediaries before coming for refining. Collecting directly from customers will result in substantial savings,” he said.

Shree Ganesh plans to add more retail outlets – from the existing 10 to 40 in two years. The retail outlets will also accept old jewellery of any make for recycling.

Due to lower production cost, the company plans to invest Rs 15 crore on brand building and offer jewellery at a rate that is at least 10 per cent lower than what competitors offer.

Besides Gaja, the company owns seven other brands targeted at different categories, such as Sitaare (for children), GM Gold (one-gram gold), Marigiold (small pieces), G Elements (22k gold jewellery for men), Gold Bridals, Dianique (designer diamond jewellery), YOU (18k diamond heart collection) and Distar.

Intrasoft Technologies IPO to open on March 23

2010-03-17T20:30:00.000+05:30

Intrasoft Technologies has decided to open its initial public offering (IPO) for subscription on Tuesday March 23, 2010 and will close on, Thursday, March 26, 2010.

Intrasoft Technologies operates the website www.123greetings.com, which is by number of unique visitors, is the largest electronic greeting cards website in India and second largest greeting card website in world (according to comScore Media Metrix during the 12 month period from November 2008 to October 2009).

It has been assigned a ‘CARE IPO GRADE 3’ indicating average fundamentals for its proposed IPO by Credit Analysis and Research.

Intrasoft has filed the red hearing prospectus with SEBI and ROC to enter the capital markets with an IPO of 37, 00,000 equity shares of face value of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 25.12% of the post issue paid up capital of the company.

The company is approaching the capital markets to fund their requirements for branding & promotions, purchasing corporate office in Kolkata, investment in technology infrastructure and general corporate purposes.

The shares of Intrasoft Technologies will be listed on the BSE and NSE.

Collins Stewart Inga Pvt. Ltd. and Anand Rathi Advisors Ltd. are the book running lead managers to the issue

Sequoia Cap to turn promoter of SKS Microfinance

2010-03-14T12:14:00.001+05:30

Venture capital fund, Sequoia Capital India is set to become a promoter of India's largest microfinance institution, SKS Microfinance, reports CNBC-TV18, quoting Mint.

Sequoia, which currently owns 24% in SKS, will lead three other venture capital firms in the move. This is the first time in India that venture capital investors are becoming promoters of a company that is going in for a public offer.

Sandstone Capital, with a 12% stake, and Kismet Capital Advisors, with a 17% stake, are the other two investors. The third will be SKS Trust for the benefit of women entrepreneurs, with a 15% stake.

The move comes even as SKS Microfinance gears up to tap the capital markets with an initial public offering.

The four venture capital firms will replace SKS founder Vikram Akulaas as the promoter.

Persistent Systems IPO to open on March 17

2010-03-13T15:22:00.001+05:30

Pune based software product development company Persistent Systems is entering capital market with an initial public offering (IPO) of 54,19,706 equity shares of Rs 10 each on March 17, 2010.

The issue consists of a fresh issue of 41,39,000 equity shares and an offer for sale of 12,80,706 equity shares by Dr Shridhar Bhalchandra Shukla and Vijayalaxmi Shridhar Shukla and Ashutosh Vinayak Joshi. The issue comprises a net issue to the public of 48,77,730 shares and a reservation of up to 5,41,976 equity shares for eligible employees. The issue will constitute 13.55% of the fully diluted post issue paid-up capital of the company.

The company will raise around Rs 157.17-168 crore at price band of Rs 290-310 per equity share. Promoters' holding will be reduced to 38.83% from 43.31% post issue.

The company will received only Rs 128.31 crore from the issue while the rest of money will go to selling shareholders.

The objects of the issue are to establish development facilities; capitalise subsidiaries for establishing development facilities and meeting fit outs and interior design costs; procure hardware and fund expenditure for general corporate purposes.

It is one of the market leaders in outsourced software product development services. It is an OPD specialty company, offering customers the benefits of offshore delivery. It designs, develops and maintains software systems and solutions, create new applications and enhance the functionality of customers‘ existing software products.

The book running lead managers to the issue are Enam Securities Private Limited and JP Morgan India Private Limited. Link Intime India Private Limited is the registrar

SKS Microfinance To File For IPO In 3-4 Weeks

2010-03-09T21:53:00.001+05:30

SKS could mop up anywhere between $200-$350 million, some of which might be raised through a pre-IPO placement.

SKS Microfinance, an Indian firm that makes small loans to poor borrowers, plans to file application papers for an IPO in 3-4 weeks, three sources with knowledge of the deal said.

The exact size and structure of the fundraising was not yet determined, with one source putting the figure at roughly $200 million, some of which might be raised through a pre-IPO placement. Another source said the company could raise $250-$350 million.

The sources did not wish to be named as they were not authorised to speak with the media.

SKS founder Vikram Akula declined to comment.

The for-profit company is India's largest microfinance institution and is backed by private-equity firms such as Sequoia Capital, Kismet Capital and Sandstone Capital.

Citigroup, Kotak Mahindra and Credit Suisse are arrangers for the IPO, sources said.

While microfinance has existed in many forms for decades, the sector has burgeoned into a large market since Muhammad Yunus, a Bangladeshi economist, was awarded the Nobel Peace Prize in 2006 for his efforts to increase access to finance for the poor.

In the year ended March 2009, SKS made a profit of 802.2 million rupees, while in the first half of the 2010 financial year, it earned 556 million rupees.

The company was founded by Vikram Akula, who has been named one of the world's most influential people by Time magazine.

Bill in LS to allow SBI to raise more capital from market

2010-03-08T18:58:00.001+05:30

A bill, seeking to reduce Centre's shareholding in the State Bank of India (SBI) from 55 per cent now to 51 per cent and to allow the bank to raise more capital from the market through preference shares, was introduced in the Lok Sabha on Monday.

Finance Minister Pranab Mukherjee moved the State Bank of India (Amendment) Bill, 2010, amidst slogan shouting by SP, RJD and BSP members against the women's reservation bill in its present form.

The bill's statement of objects and reasons said the legislation was aimed at allowing "reduction of shareholding of the Central government from 55 per cent to 51 per cent consisting of the equity shares of the issued capital."

It said the SBI Act, 1955, was amended in 1993 to enable the bank to access capital market. "While SBI can access capital market by issuing equity shares or bonds, or by both equity shares and bonds, there is no express provision under the SBI Act to enable the bank to issue preference shares and also bonus shares," it added.

"The amendment bill seeks to provide for enhancement of the capital of State Bank by issue of preference shares, to enable it to raise resources from the market by public issue or preferential allotment or private placement," it said.

"The bill also aims to provide for flexibility in the management of the bank," it added.

It will provide for increasing the authorised capital of the SBI to Rs 5,000 crore and enable the Central government to increase or reduce the authorised capital in consultation with the Reserve Bank of India.

IL&FS Transportation IPO opens on Mar 11, to raise Rs 700 cr

2010-03-08T18:09:00.001+05:30

IL&FS Transportation Networks (ITNL) today said it plans to raise Rs 700 crore from its initial public offer and take up international airport development projects in association with the Airports Authority of India

The price band of the public offer has been fixed between Rs 242 and Rs 258.

"We plan to hit the capital market on March 11 and aim to raise up to Rs 700 crore through our IPO. Of the total funds raised, Rs 530 crore will go towards repayment of debt and the rest for new projects," ITNL Managing Director K Ramchand told reporters here today.

The company also plans to undertake various airport projects with Airports Authority of India (AAI).

"We are looking at international airport projects in association with our strategic technical advisor, Airports Authority of India. We will bid for such projects at the right time," Ramchand said.

Part of the proceeds of the IPO will go towards repaying the debts to the tune of Rs 1,000 crore.

"We have a Rs 1,000 crore debt and plan to repay Rs 530 crore," he said. ITNL filed its draft red herring prospectus (DRHP) with the Sebi on September 29 last year.

ITNL is engaged in road development, which constitutes over 90 per cent of its business. It has won one project each in metro rail and urban bus transportation, he said.

"The feel good factor is back in the market and there is a momentum happening in the road sector. We think this is the right time to hit the capital market," he said.

ITNL has its hands full with several projects at diffrerent stages.

"The company has an order book of Rs 9,000 crore. We have 19 projects under our portfolio and have already completed 9 projects," he said, adding the remaining would be completed within two years.

The issue closes on March 15.

Enam Securities and Nomura Financial Advisory and Securities (India) and JM Financial Consultants are the book running lead managers to the issue. The Co-BRLMs are Avendus Capital and SBI Capital Markets.

BSNL to offer 5% equity to public Another 5% for private investors

2010-03-08T13:11:00.000+05:30

State-run Bharat Sanchar Nigam Ltd (BSNL) plans to raise money through a maiden float and private placement of shares.

In a meeting held on Friday, the BSNL board decided to offload 5 per cent equity to the public and 5 per cent to private entities, said sources.

The board had cleared a plan to divest 10 per cent through an initial public offering (IPO) in 2008 to raise about Rs 10,000 crore.

The company’s union is against divestment as it may lead to job losses. The BSNL board had proposed to give preferential shares to its employees to convince the union of the merits of listing the telecom firm. The proposal was rejected.

BSNL has been losing market share to private entities because of its inability to add to capacity and execute projects in time. It has also scrapped a tender to procure mobile equipment for expansion.

Sources said the state-run telecom firm had other plans in the pipeline, including the sharing of towers and optical fibre backbone with competitors and providing IT services such as security (firewalls) and managed network to other companies.

Earlier, the Sam Pitroda committee — set up by the Prime Minister’s Office to bolster the deteriorating financial health of the company — had suggested the government should sell a 30 per cent stake in the company through an initial public offering and raise funds from the sale of infrastructure assets such as towers and real estate.

Prime Minister Manmohan Singh, worried about the steep decline in BSNL’s profitability over the years, had appointed Pitroda as the head of the committee, which had banker Deepak Parekh and telecom secretary P.J. Thomas as members.

The Pitroda panel had also said BSNL, having 40,000 towers in 20 circles, should follow private companies such as Bharti and Idea Cellular that raised their valuations by selling towers for huge sums.

Another private player Aircel, too, sold 17,500 towers for Rs 8,400 crore to GTL Infrastructure in January.

BSNL’s towers are now worth over Rs 19,200 crore. “The value can be unlocked through strategic sale or an initial public offering,” said the committee.

HT Media Ventures plans Rs 300 cr IPO; files DRHP

2010-03-05T22:26:00.000+05:30

HT Media today said its subsidiary Hindustan Media Ventures Ltd plans to raise up to Rs 300 crore through an initial public offer and has filed draft papers with the market regulator SEBI for the same.

Hindustan Media Ventures has filed the draft red herring prospectus with Sebi with respect to its proposed IPO for cash at a price including share premium, aggregating up to Rs 300 crore, HT Media said in a filing to the Bombay Stock Exchange.

HT Media Ltd is the publisher of English daily The Hindustan Times. In addition to Hindustan Times, HT Media also publishes a national business newspaper--Mint.

Hindustan Media Ventures is the publisher of Hindi daily newspaper Hindustan.

Career Point Infosystems plans to raise Rs 115 cr via IPO

2010-03-05T19:03:00.000+05:30

Career Point Infosystems plans to raise upto Rs 115 crore via initial public offering (IPO). It has filed draft red herring prospectus (DRHP) with SEBI.

It provides tutorial services to high school and post high school students for various competitive entrance examinations including All India Engineering Entrance Examination, Indian Institute of Technology – Joint Entrance Examination and All India Pre-Medical and Pre-Dental Test.

The company has recently forayed into Education Consultancy and Management Services (‘ECAMS’), catering to K-12 and Higher Education segments. Further, to address larger base of potential students, we have introduced technology enabled education delivery platform for delivering content through ‘TechEdge Class’.

The issue proceeds will be used for construction & development of integrated campus facility; expansion of classroom infrastructure & office facility and acquisitions & other strategic initiatives.

Promoters currently hold 75.35% stake in the company. It includes eight promoters and each one holds over 9% stake in the company.

For the period of six months ended on September 2009, it has reported profit after tax of Rs 9.49 crore on total income of Rs 33.68 crore. It has debt of Rs 0.53 crore.

The book running lead managers to the issue are Centrum Capital Limited and JM Financial Consultants Private Limited. Link Intime India Private Limited is the registrar.

Pradip Overseas IPO to open on March 11

2010-03-05T19:02:00.000+05:30

Pradip Overseas, a textile manufacturer with niche focus on home linen products of both, is entering capital market with an initial public offering (IPO) of 1.06 crore equity shares of Rs 10 each on March 11, 2010.

The issue comprises 5 lakh equity shares reserved for subscription by eligible employees and a net issue to the public of 1.01 crore equity shares. The issue will constitute 26.26% of the fully diluted post issue paid-up capital of the company. The issue will close for subscription on March 15.

The objects of the issue are (1) to part finance the setting up the proposed manufacturing facility within the proposed textile SEZ and (2) to part finance the incremental margin money requirement for working capital.

As per the DRHP filed in January 2009, promoters' holding will be reduced to 68.68% from 93.16% post issue.

The book running lead manager to the issue is IL&FS Investsmart Securities Limited and Intime Spectrum Registry Limited is the registrar.

SEBI clears Emaar MGF public issue

2010-03-04T17:51:00.001+05:30

Securities and Exchange Board of India, SEBI has cleared Emaar MGF public issue. According to company officials, timing of issue will be decided soon. The company has a one-year window. However, the officials says, they do not want issue at time of volatily.

Emaar-MGF had earlier planned to tap the markets in February 2008. It was looking to raise over Rs 6,400 crore in the price band of Rs 530-630. But the company had to withdraw the issue due to weak market conditions post the US subprime crisis and was unable to raise the money.

StanChart picks iBankers for India listing

2010-03-04T14:53:00.000+05:30

Standard Chartered, the London-headquartered bank that gets 90 per cent of its profits from Asia, Africa and West Asia, has finalised plans to get listed in India by June.

The bank, which has had a presence in India for more than 150 years, will file a prospectus by the end of this month for an issue of Indian depository receipts (IDRs) to become the first foreign company to list on Indian bourses six years after the first IDR rules were framed.

Investment banks Goldman Sachs, UBS, Kotak, DSP Merill Lynch and SBI Caps have been appointed as advisors to the IDR issue.

Neeraj Swaroop, country chief executive, Standard Chartered India, said, “We will file our draft red herring prospectus (DRHP) latest by the end of March. We are looking at raising around $500 million to $1 billion from the listing based on the market conditions.” Swaroop was talking to reporters after announcing the financial results of Standard Chartered's India operations.

Swaroop said the bank has cleared a majority of the regulatory hurdles with the RBI and is now in a position to announce their listing plans. “Some minor approvals have to be obtained but they are more of procedural and hence will be obtained during the filing process.”

India, for Standard Chartered, continues to be the second best market after Hong Kong in the world. Standard Chartered's India operations reported a 19 per cent increase in profit before tax to $1.09 billion in 2009 from $891 million a year earlier. The share of operating profit in the bank's total profit stood at 20.5 per cent in 2009.

The rise in profit was on the back of strong growth in its wholesale business. The bank's operating profit from wholesale business jumped 49 per cent to $1.006 billion in 2009 from $674 million in 2008. “Wholesale banking business is the single largest profit-making business in India,” Swaroop told said in Mumbai. StanChart has 150 wholesale banking clients in India.

The subdued growth in the consumer banking segment continued even in 2009. The bank saw the operating profit from consumer banking business fall 24 per cent to $54 million from $71 million in 2008. “Within the consumer banking, portfolios like SMEs and Mortgages grew faster than other categories,” Shyam Srinivasan, head of consumer banking said.

StanChart plans IDR issue by June

2010-03-03T21:29:00.000+05:30

In what would be the first instance of equity-raising in India by an overseas-listed company, UK-based Standard Chartered Plc. plans to raise up to $ 750 million (Rs 3, 450 crore) through Indian Depository Receipts (IDR) issue within the first half of the calendar year.

“We have already got advisors and we will file for the IDR issue after our (India) results are published by March-end,” said Neeraj Swaroop, Regional Chief Executive, India and South Asia.

In a statement today, Standard Chartered Group Chief Executive Peter Sands said, “There is a race for which will be our biggest market by profits this year. We have built a superb franchise in India, and this year it is our intention to open a new chapter in our long history there with the listing.”

The Indian branch of Standard Chartered Bank recorded an operating profit of $ 1,060 million (Rs 4,886 crore at today’s rates) for 2010—just $ 2million less than the Hong Kong division’s figures of $ 1,062 million.

Like American or Global Depository Receipts (ADRs/GDRs), where Indian companies raise resources overseas, IDRs enable foreign companies to do the same in India. ADRs and IDRs are derivatives instruments that derive their value from the shares deposited with custodians.

The bank has appointed JM Financial and UBS AG as lead managers to the issue. Goldman Sachs, Bank of America and Kotak Mahindra are the other banks appointed to manage the issue.

Swaroop had earlier told Business Standard that the listing would not have a material impact on the bank’s India operations. “What it does is to help improve our presence in the country because you are bringing one more element to engage with the banking public. So, you are not just bringing in banking services, but you are also bringing in the Standard Chartered stock so they can become investors.”

“It gives the Indian public a chance to participate in the risks and opportunities on the global scene. It also demonstrates to the policy makers our continued commitment because we would not list if we were not planning long term,” Swaroop said.

DQ Entertainment IPO to open on March 8

2010-03-02T19:21:00.001+05:30

DQ Entertainment (International) (DQE), the Animation, gaming and entertainment production and distribution company, is entering capital market with an initial public offering (IPO) of 1,60,48,011 shares on March 3, 2010.

The price band and the minimum bid lot will be announced by the company at least two working days prior to the issue opening date.

The price of the issue, which will close on March 10, will be determined through the 100% book-building mechanism.

Its promoter DQ Entertainment (Mauritius) Limited's holding will be reduced to 75% post issue.

The company had raised Rs 25.69 crore in a pre-IPO placement in previous month. IDFC had subscribed for Rs 20 crore worth of shares under its IDFC Hybrid Infrastructure Portfolio.

The issue proceeds will be utilised for investment in co-production agreements, focusing on IP content creation; development of office premises and production facilities; development of infrastructure and additional facilities at the SEZ Unit, Kokapet Village, Rangareddy District, Andhra Pradesh and investment in subsidiary, DQ Entertainment(Ireland) Limited.

For the period of six months ended on September 2009, it has reported net profit of Rs 10.17 crore on total income of Rs 73.75 crore.

The equity shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE). The book running lead manager to the Issue is SBI Capital Markets Limited.

DQE is one of the leading producers of animation, visual effects, game art and entertainment content for the Indian as well as global media and entertainment industry. With a workforce of over 2800 permanent employees and a global client - partner base of over 90 producers, distributors, broadcasters and licensors including Walt Disney Television Animation, Nickelodeon Animation Studios Inc., Electronic Arts, Marvel Comics, American Greetings, NBC-Universal, BBC Group, M6/ France TV/ TF-1 Broadcasting groups from France, ZDF Germany and many more world-wide.

DQE's production facilities are based in Hyderabad, Mumbai and Kolkata and it has international sales representatives in Los Angeles, Paris and Tokyo.

UCO Bank FPO likely by April end or early May: CMD

2010-03-02T19:20:00.001+05:30

State-run UCO Bank's follow-on public issue of 60 million equity shares will hit market by April end or early May, its chairman and managing director said on Tuesday.

"We had our EGM (extra-ordinary general meeting) today, where we got the shareholders approval for the FPO," SK Goel told reporters.

"We are in the process of finalising the merchant bankers," he said.

The board, in its meeting on January 30, had decided to issue 60 million equity shares with a face value of Rs 10 each at a suitable premium for raising funds.

The bank has government's approval for a follow-on public offer.

ARSS Infrastructure to list on Mar 3, IPO price at Rs 450

2010-03-02T12:17:00.003+05:30

Orissa based company ARSS Infrastructure Projects has fixed March 3, 2010 as a listing date for its equity shares issued recently via public issue. It also fixed the issue price at Rs 450 per share, at higher end of price band of Rs 410-450.

The Rs 103 crore IPO, which was opened during February 8-11, had received overwhelming response from investors and subscribed 47.62 times.

Non-institutional investors were the leading subscribers in this issue. Their reserved portion got subscribed 124.5 times. Qualified institutional and retail investors’ reserved portion subscribed 49.3 times and 18.55 times, respectively.

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 issue proceeds will be used 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 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.

Satluj Jal Vidyut IPO likely in Apr: Fin Min official

2010-03-02T12:17:00.001+05:30

India is likely to sell shares in state-run Satluj Jal Vidyut Nigam Ltd through an initial public offering in April, Disinvestment Secretary Sumit Bose said on Friday.

NMDC follow-on offer to open March 10

2010-03-02T12:15:00.000+05:30

The follow-on public offering (FPO) of state-run mining firm NMDC (National Mineral Development Corporation) will open for subscription on March 10 and close March 12.

A 5% discount to the offer price determined pursuant to the completion of the book-building process shall be offered to retail individual bidders and eligible employees.

The largest iron ore producer by volume in India (according to the Federation of Indian Mineral Industries), is entering the capital market with a follow-on public offer of 332,243,200 equity shares of face value Re 1 each through an offer for sale by the President of India, acting through the Ministry of Steel (MoS), Government of India for cash at prices determined through the alternate book building method.

The offer comprises a net offer to the public of 330,500,000 equity shares and a reservation of 1,743,200 equity shares for purchase by eligible employees at a discount of 5% to the floor price. The offer shall constitute 8.38% of the post offer paid-up equity share capital of the company. The government will hold 90% stake in the company post issue.

The company shall not receive any proceeds of this offer and all the proceeds shall be received by the selling shareholder - the Government of India, which will dilute 8.38% stake in the company.

For the nine-month period ended December 2009, it has reported a profit after tax of Rs 2,381.51 crore on a total income of Rs 4,882.54 crore.

The book running lead managers to the issue are UBS Securities India Private Limited, Citigroup Global Markets India Private Limited, Edelweiss Capital Limited, Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited and RBS Equities (India) Limited (formerly known as ABN Amro Asia Equities (India) Limited).

United Bank of India IPO subscribed 33 times

2010-02-25T19:20:00.000+05:30

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

SJVNL IPO put on hold until next fiscal

2010-02-24T15:17:00.001+05:30

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.

Big Bazaar IPO shelved, says Biyani

2010-02-23T23:35:00.000+05:30

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

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

2010-02-22T21:17:00.000+05:30

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.

Hathway sets issue price of Rs 240/sh

2010-02-20T13:53:00.000+05:30

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

2010-02-20T13:52:00.000+05:30

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

2010-02-20T13:47:00.000+05:30

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

2010-02-20T13:46:00.000+05:30

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

2010-02-20T13:43:00.000+05:30

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."

ARSS Infra Project IPO to open on Feb 8

2010-02-08T09:56:00.000+05:30

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.

Jubilant FoodWorks to list on February 8

2010-02-05T12:51:00.001+05:30

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.

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

2010-02-04T14:15:00.000+05:30

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

2010-02-04T14:14:00.000+05:30

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

2010-02-04T14:13:00.000+05:30

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

2010-02-04T14:12:00.000+05:30

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

2010-02-04T14:11:00.000+05:30

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

2010-02-04T14:08:00.000+05:30

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%.

Thangamayil Jewellery IPO to open on Jan 27

2010-01-20T22:46:00.000+05:30

Thangamayil Jewellery is coming out with an initial public offering (IPO) of Rs 28.75 crore on January 27, 2010. The price band for the issue has fixed at Rs 70-75 per equity share. The issue will close on January 29.

The company intends to 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.

For the year ended March 31, 2009, it has reported 10% jump in its net sales of Rs 246.84 crore and net profit of Rs 7.49 crore.

Quippo Telecom may list by FY10 end or early FY11

2009-09-11T13:57:00.001+05:30

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

2009-09-11T13:55:00.000+05:30

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

2009-09-11T13:52:00.000+05:30

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

2009-09-11T13:30:00.000+05:30

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.

Texmo Pipes and Products proposes an IPO to fund expansion

2009-01-01T13:24:00.000+05:30

Texmo Pipes and Products Limited, presently engaged into manufacturing of PVC and HDPE pipes, proposes the expansion of product range and setting up of manufacturing facilities for injection mouldings/fittings and woven sacks.

To fund this expansion plan, the Company proposes to enter the Capital markets with a public issue of 50,00,000 Equity shares of Rs 10 each through 100% book building process. The Issue would constitute 44.37% of the fully diluted post issue paid-up capital of the Company. Almondz Global Securities Ltd is the Book Running Lead Manager for the Issue and Karvy Computershare Pvt Ltd is the registrar.

Texmo Pipes and Products Limited has two production units at Burhanpur in Madhya Pradesh, where it manufactures PVC and HDPE pipes to meet the requirements of application in irrigation, agriculture, potable water supply schemes, sewerages and drainage systems, construction industry, telecom industry and bore/tube well for underground water suction.

Some of its clients during the financial year 2007-08 were Idea Cellular, Reliance Communication Infrastructure Ltd., and Videsh Sanchar Nigam Ltd. With the increase in demand for various types of pipes, the Company intends to expand its product range by venturing into manufacturing of CPVC, DWC and drip in-line pipes. Also in order to facilitate its clients with accessories for the pipes, it plans to venture into manufacturing of injection mouldings/fittings. The Company also intends to diversify in the manufacturing of woven sacks.

Great Eastern Energy Corporation Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India.

2009-01-01T13:15:00.000+05:30

Great Eastern Energy Corporation Ltd has filed its draft red herring prospectus with the Securities and Exchange Board of India.

The company is in the business of exploration, development, production, distribution and sale of natural gas from coal seams, commonly known as CBM.

IPO details

Great Eastern Energy expects to enter the capital market with an initial public offering of up to 9.13 crore equity shares of Re one each for cash.

The price would be determined through a 100 per cent book building process.

The issue would constitute approximately 15.45 per cent of the fully diluted post-issue paid-up capital of the company.

The equity shares are proposed to be listed on both the Bombay and National stock exchanges.

The company’s Global Depository Receipts are listed on the Alternative Investment Market of the London Stock Exchange.

The company currently produces CBM from its block, which spans an aggregate area of 210 square kilometres.

The block situated in Raniganj, West Bengal, has an estimated 1.92 trillion cubic feet of gas-in-place (according to a report issued by Netherland, Sewell & Associates, Inc., on June 1, 2007).

The book running lead managers to the issue are Enam Securities, ABN AMRO Asia Equities (India) Ltd and SBI Capital Markets Ltd, reports The Hindu Business Line.

Reliance Infratel IPO deadline lapses

2008-08-29T13:47:00.000+05:30

Reliance Infratel, the telecom infrastructure unit of Reliance Communications, is learnt to have deferred its plans for an initial public offering (IPO) because of the current volatility in the stock markets.

The outer deadline for completion of its IPO was August 11. A company has to complete the IPO process within 90 days after obtaining SEBI’s observations on its draft red herring prospectus.

Reliance Infratel had got the regulator’s approval for its proposed IPO on May 12. The prospectus was filed with SEBI on February 4.

The deadline, after which the regulator’s approval lapses, has passed without any announcement of an initial public offering by the company.

A spokesperson for Reliance Communications declined to comment on this development. It could not be ascertained whether the company would revive its IPO plans in the immediate future.

This is the third major IPO that is being deferred in recent times after that of commodity exchange MCX and mutual fund company UTI AMC. This clearly reflects the falling level of confidence among corporations and investors in the Indian financial markets, analysts said.

Moreover, all the Anil Dhirubhai Ambani Group stocks have been losing ground on the bourses. Analysts feel that the poor performance of the Reliance Power scrip, post its listing, could have also prompted the company to go cautious with the Infratel IPO. On the very day the RPower issue was listed, the scrip slipped below its offer price of Rs 450.

Reliance Infratel intended to issue 8.91 crore shares constituting 10.05 per cent of the post-issue paid-up equity capital of the company. Through this IPO, the company was expected to mop up about Rs 6,000 crore from the capital markets, reports The Hindu Business Line.

20 Microns IPO opens on Sept 8

2008-08-29T13:37:00.000+05:30

20 Microns, a pioneer and leader in the micronised minerals and trend setter in the market for usage of ultrafine minerals for the Paints & Plastic Industries, proposes to enter the capital markets on September 8, 2008 with a public issue of 43,50,632 Equity shares of Rs 10 each through 100% book building process. The IPO will close on September 11, 2008. The company has fixed the price band between Rs 50 and Rs 55 per equity share.

The issue consists of a fresh issue of 16,75,000 equity shares of Rs 10 each and an offer for sale of 26,75,632 equity shares by Gujarat Venture Capital fund 1995. Up to 2,17,532 equity shares will be reserved for subscription by eligible employees. The issue will constitute 30.81% of the post issue paid up capital of the company. The issue has been graded by the Credit Analysis & Research (CARE) and has been assigned the IPO Grade 3 indicating Average Fundamentals.

The company intends to utilize the proceeds of the fresh issue in the IPO towards the current ongoing expansion plans of the manufacturing capacities at various locations, invest in the sub-micron particle sizes required by end-market and general corporate purposes.

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

The book running lead manager is Keynote Corporate Services Limited.

MCX public issue by August

2008-07-23T21:59:00.001+05:30

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

2008-07-23T21:55:00.000+05:30

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

2008-07-23T21:51:00.000+05:30

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.

UTI AMC defers IPO due to market conditions

2008-07-08T22:07:00.000+05:30

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.

Birla Cotsyn IPO opens on June 30

2008-06-24T21:51:00.000+05:30

Birla Cotsyn (India) proposes to enter the capital markets with a public issue to raise Rs 14,418 lakh through equity shares of face value of Rs 10 each. The issue opens on June 30, 2008 and closes on July 04, 2008. The price band has been fixed at Rs 15-18 per equity share.

The issue price is 1.5 times of the face value at the lower end of the price band and 1.8 times of the face value at the higher end of the price band.

This issue has been graded by CARE and has been assigned the "IPO Grade 3".

Allbank Finance Limited is the book running lead manager to the issue.

Nexgen Capitals Limited, Saffron Capital Advisors Private Limited and Chartered Capital and Investment Limited are the co-book running lead managers to the issue.

Adroit Corporate Services Pvt. Limited is the registrar to the issue.

Somi Conveyor Beltings to raise Rs 16.5 cr through IPO

2008-06-24T21:48:00.000+05:30

Somi Conveyor Beltings said they are raising Rs 16.55 crore through the Initial Public Offering (IPO) and also we are putting Rs 10 crore, so total comes to Rs 21 crore odd. The funds raised will be used exclusively for their plant.

DVC plans to float subsidiary for IPO

2008-06-18T08:15:00.000+05:30

Damodar Valley Corporation is planning to float a subsidiary company with a view to come out with an initial public offer to raise funds for its projects during the 12th Plan.
"Since DVC is a statutory body and not registered under the Companies Act, it has to float a separate subsidiary to bring the IPO," DVC chairman, Mr Asim Barman said while addressing a Press conference here today. However, he did not give any time frame for the IPO.
Referring to a different initiative, Mr Barman said that DVC had formed a special purpose vehicle called Damodar Valley Tourism Development Private Limited with IL&FS Infrastructure Development Corporation Limited to develop tourism and tourism related infrastructure in DVC command areas.
He said: "We have identified six cites for undertaking tourism projects. These places are Maithon, Panchet, Tilaiya, Hazaribag, Konar and Rajrappa".
DVC, which is celebrating its golden jubilee this year, today reported a decline in net profit at Rs 1,126 crore for the financial year 2007-08.

Somi Conveyor Beltings IPO opens on June 24

2008-06-18T08:14:00.000+05:30

Somi Conveyor Beltings will enter the capital market with an initial public offering, IPO of 62,27,860 equity shares of Rs 10 each through 100% book building process on June 24, 2008. The price has been fixed at Rs 35 per equity share. The issue will close for subscription on June 27, 2008.

The issue comprises of contribution by promoters, of 14,99,286 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 5.25 crores, and the net issue to the public of 47,28,574 equity shares of Rs 10 each at a price of Rs 35 per equity share for cash aggregating to Rs 16.55 crores including an allocation of atleast 10% of the net issue to the public to Aualified Institutional Buyers. The net issue to public would constitute 40% of the fully diluted post issue paid up capital of the company. The issue price is 3.5 times of the face value of the equity share.

The shares are proposed to be listed on the BSE.

Ashika Capital is the Lead manager to the issue.

Mondkar Computers is the Registrar to the issue.

Sejal Architectural fixes issue price at Rs 115

2008-06-18T08:11:00.000+05:30

Sejal Architectural Glass, a glass processing house in India, has fixed the Issue Price of its equity shares at Rs 115 per share for its initial public offering (“IPO”) of 9,194,155 equity shares of Rs 10 each determined through the 100% book building process (the “Issue”).

The Issue closed on June 12, 2008, and was subscribed 9.90 times (according to the preliminary information received by the stock exchanges). The Qualified Institutional Bidders (“QIBs”) portion was subscribed to approximately around 4.26 times; the Non-Institutional Bidders portion was subscribed to approximately around 33.18 times; the retail portion was subscribed to approximately around 7.96 times.

The Issue constitutes 32.84% of the fully diluted post issue paid up capital of the Company. The Equity Shares will be listed on National Stock Exchange of India Limited (“NSE”) and Bombay Stock Exchange Limited (“BSE”). Saffron Capital Advisors Private Limited is the sole Book Running Lead Manager (“BRLM”) to this Issue.

Incorporated in the year 1998, Sejal Architectural Glass Limited started its commercial operations in the year 2000-01 by setting up a processing facility for insulating glass. As a step forward, it started another process for toughened glass in the year 2001. Since then, the Company has expanded its operations by adding an automated lamination line in January 2007 and has broadened its scope of business activities by processing various value added glass for exterior and interior applications, including decorative glass.

Its glass has been used in well-known structures such as the Reliance Dhirubhai Ambani Corporate Centre (Navi Mumbai), Inorbit Mall (Mumbai), Bharat Diamond Bourse (Mumbai), Chhatrapati Shivaji International Airport, Domestic Terminal (Mumbai), New Bangalore International Airport and K. Raheja IT Park (Hyderabad) amongst others.

Lotus Eye Care extends IPO to June 20, price band Rs 36-38

2008-06-18T08:06:00.000+05:30

Lotus Eye Care Hospital has revised its IPO price band to Rs 36-38 from Rs 38-42 per share and extended by three days on the back of poor subscription. Now the issue will close on June 20, 2008 instead of today, June 17.

It has subscribed only 0.54 times as per the NSE web site. It has received total bids for 54,26,700 shares as against issue size of 1,00,00,000 shares.

The issue had opened for subscription on June 12, 2008 with a public issue of 1,00,00,000 equity shares of Rs 10 each through 100% book building process. The price band is between Rs 38 to Rs 42 per equity share of Rs 10 each.

The issue will constitute 48.09% of the fully diluted post issue paid-up equity share capital of the company.

Keynote Corporate Services Ltd is the BRLM and Canara Bank Merchant Banking Division is the co-lead manager for the issue and S.K.D.C. Consultants Ltd is the registrar to the issue.

The company proposes to utilise the net proceeds of the issue to part finance its Rs 5500 lacs expansion plan. The plan covers expansion of existing facilities and establishment of new centers with latest technology. To fund this plan, Lotus expects to raise Rs 4200 lakh through the public issue, it has tied up Rs 999.54 lakh of term loans from banks and raises remaining Rs 300.46 lakh through internal accruals.

First Winner revises IPO price band to Rs 115-125

2008-06-13T22:16:00.000+05:30

First Winner Industries presently engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers, announced that its public issue, which was initially slated to close on June 12, will now close on June 17. The price band has been revised downwards from Rs 120-130 to Rs 115-125. As on June 12 the issue had received bids for 40.69 lakh shares as against issue size of 55,00,000 shares and was subscribed only 0.74 times.

The issue had opened for subscription on June 9, 2008 with an Initial Public Offering (IPO) of 55,00,000 Equity Shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). Almondz Global Securities Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Godrej Properties files DRHP with SEBI

2008-06-04T22:21:00.000+05:30

Godrej Properties, one of the leading real estate development companies in India, proposes to enter the capital markets to raise necessary funds for the company's expansion plans and has filed a draft red herring prospectus with SEBI.

The company proposes an initial public offering of 9,429,750 equity shares of Rs 10 each through 100% book building process to part finance this plan.

ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd are the BRLMs for the issue.

Godrej Properties is in the business of real estate development including residential, commercial and township development. The company currently has real estate development projects in 11 cities in the country at various stages of development.

As of May 15, 2008, it has completed a total od 19 projects consisting 13 residential and 6 commercial projects, aggregating approximately 3.62 million sq. ft. of Developable Area.

Godrej Properties' land reserves currently stands at 404 acres, aggregating to approximately 78.87 million sq. ft. of developable area and 54.98 million sq. ft. of saleable area, which includes its ongoing projects and forthcoming projects. This land reserves include 54.1 acres which are in the process of being aggregated.

Its promoter and parent company Godrej Industries Limited, currently holds 81.41% of the equity share capital of Godrej Properties. Godrej Industries Limited is the listed flagship company of the Godrej Group of companies.

First Winner Industries IPO opens on June 9

2008-06-04T22:18:00.000+05:30

First Winner Industries, presently engaged in the manufacture of grey fabrics and in trading of textile fabrics which are supplied to various wholesalers, apparel and garment manufacturers, proposes to enter the capital market on June 9, 2008, with an Initial Public Offering (IPO) of 55,00,000 Equity Shares of Rs. 10 each for cash at a price to be decided through a 100% Book-Building Process (the “Issue”).

The Issue comprises of an Employee Reservation of 100,000 Equity Shares and a Net Issue to Public of 54,00,000 Equity Shares. The Issue will constitute 31.02% of the post-Issue paid-up capital of the Company. The Price Band has been fixed at Rs. 120 to Rs. 130 per Equity Share and the Issue will close on June 12, 2008. The Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). Almondz Global Securities Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Incorporated in 2003, First Winner Industries Ltd. started its operations with the objective to supply the textile fabrics to wholesalers and apparel & garment manufacturers. Initially, it started trading in the textile fabrics and with a view to have its own manufacturing facilities, it has set up its own weaving unit during 2006-07 by installing 100 looms. The manufacturing facilities are located at MIDC, Tarapur, District Thane, Maharashtra. The unit has total installed capacity to manufacture 108 lakh meter grey fabrics per annum. The Company is also executing job works for fabric and garment manufacturers.

The Company has two subsidiaries; viz., Ramshyam Textile Industries Limited and First Winner Lifestyle Private Limited (formerly Realgold Exports Private Limited), which are engaged in the same business. Ramshyam Textile Industries Limited is having 48 looms with total installed capacity of 42.24 lakh meter fabrics per annum. First Winner Lifestyle Private Limited has a weaving unit with 48 looms and total installed capacity of 62 lakh meters per annum.

In order to diversify and expand its business activities, the Company has decided to set up a new apparel manufacturing facility with a production capacity of 5,000 pieces of men’s wear shirts per day at an estimated cost of Rs. 1,203.98 lakhs and setting up of a new weaving unit to increase its existing production capacity to 170 lakhs meter p.a. at an estimated cost of Rs. 2,163.47 lakhs. The Company also intends to make prepayment of term loan amounting to Rs. 1,800 lakhs. The Company plans to meet the aforesaid objectives by means of issue proceeds.

Avon Weighing Systems IPO opens on June 9

2008-06-04T22:15:00.000+05:30

Avon Weighing Systems, a company engaged in the business of selling weighing systems in India, proposes to enter the capital markets on June 9, 2008 with a public issue of 1,37,33,033 equity shares of Rs 10 each at par aggregating to Rs 1373.30 lakh. This comprises of promoters’ contribution of 38,96,633 equity shares aggregating to Rs 389.66 lakh, leaving a net offer to the public of 98,36,400 equity shares aggregating Rs 983.64 lakh constituting 59.33% of the post issue paid-up capital of the company.

The issue closes on June 12, 2008. CARE has assigned “IPO Grade 2” to the issue. The equity shares are proposed to be listed on BSE.

Keynote Corporate Services Limited is the Lead Manager for the Issue and Datamatics Financial Services Limited is the Registrar to the Issue.

The company proposes to part finance its Rs 17.30 crore plan through the net proceeds of the issue. The plan include setting up of facility for manufacturing of a range of weighing systems, open four showrooms for display and sale of its weighing systems in Mumbai, Delhi, Chennai and Hyderabad, and purchase of additional office premises in Mumbai. The project is proposed to be funded through IPO of Rs 9.83 crores, promoters contribution of Rs 4.36 crores, internal accruals of Rs 0.50 crore and a term loan of Rs 2.60 crores from Bank of India.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan. Avon will be able to enjoy fiscal incentives provided by the Himachal Pradesh government for setting up plant at Baddi such as exemption of payment of Central Excise duty for 10 years, 100% income tax exemption for initial 5 years and thereafter 30% for further period of 5 years, Capital investment subsidy for 6 years @15% on their investment in plant & machineries subject to a ceiling of Rs 30 lacs, Central Sales Tax @1%, Electricity Duty exemption on captive power generated from D.G set/Hydel unit upto 31/03/2009, Price preference upto 15% for SSI.

Avon is the authorised dealer and one of the distributors of Tanita and A&D products (weighing systems) in India since 1999. The company also provides consultancy to various industrial houses, on the latest weighing systems and applications and is focused on software to enhance the applications of weighing scales.

Avon’s total income for the year ended March 31, 2008 was Rs 52.14 crore as against Rs 40.17 crore for 2006-07 and PAT was at Rs 1.85 crore as against Rs 1.37 crore.

Sejal Architectural Glass IPO to open on Jun 9

2008-06-04T22:08:00.000+05:30

Sejal Architectural Glass on Wednesday said it will raise up to Rs 105.73 crore through an initial public offering that will open on June 9.

The price of the issue, which would include 91.94 lakh equity share of Rs 10 each, would be decided through 100 per cent book building process. The price band has been set at Rs 105-115.

The IPO would constitute 32.84 per cent of the fully diluted post issue paid-up equity capital of the company and the issue will open on June 9 and close on June 12. The company proposes to list its equity shares on the National Stock Exchange and Bombay Stock Exchange.

"The company would use proceedings from IPO in setting up a manufacturing for the production of float glass with an installed capacity of 2,00,750 MT per annum at Bharuch in Gujarat," Sejal Architectural Glass Ltd Joint Managing Director Dhiraj S Gada told reporters.

The proposed manufacturing unit would be the first greenfield plant to be set up by the company with an investment of around Rs 430 crore. The new production unit would start commercial operations from March 2009.

Presently, the company has processing facilities for insulating, toughened, laminated glasses and decorative glass.
The company has also raised around Rs 318 crore as long term debt from banks.

Setting up of the greenfield project would be a step toward backward integration for the company and would enable it to control its cost and enhance the quality of glass used for value-added products and brands like Kool Glass, Armor Glass, Fort Glass and Tone Glass, Gada said. The company has appointed Saffron Capital Advisors Pvt Ltd as the sole book running lead manager to the issue.

Niraj Cement IPO opens on May 22; price band Rs 175-190

2008-05-16T22:09:00.000+05:30

Niraj Cement Structurals, an engineering and construction company, will enter the capital market with an initial public offering, IPO of 32,50,000 equity shares of face value Rs 10 each on on May 22, 2008. The price band has been fixed at Rs 175-Rs 190 per equity share. The issue will close for subscription on May 28, 2008.

The issue price is 17.5 times the face value at the lower end of the price band and 19 times the face value at the higher end of the price band.

The issue comprises a reservation for eligible employees of 3,25,000 equity shares and net issue to the public of 29,25,000 equity shares. The issue would constitute 31.42% of the total post issue paid-up equity capital of the company.

The equity shares offered through this issue are proposed to be listed on the BSE. The issue has been graded by CARE and has been assigned the ‘CARE IPO GRADE 1’.

The book running lead manager to the issue is Allbank Finance Limited and Intime Spectrum Registry Limited is registrar.

MoS Power says Fin Ministry rejects NTPC FPO

2008-05-15T14:25:00.001+05:30

MoS Power said that Finance Ministry has rejected NTPC's follow on public offer, FPO,

Government was planning to divest 4.7% stake in NTPC via FPO.

MCX gets SEBI nod for IPO, likely by June end

2008-05-15T14:24:00.000+05:30

Multi Commodity Exchange, MCX has received SEBI nod for its initial public offer (IPO) and likely to open by June-end,

The initial public offer will constitute 1 crore shares of face value of Rs 5 each. The price band is seen between Rs 600-700 per share. DSP ML appointed as senior book running lead manager and other lead managers include Citi, Enam, JM Financial.

CTT deferment to October will help MCX get the valuations. Financial Technologies, FT (a key shareholder in the MCX) will be diluting 10% stake, so the FT's stake will move down to 22% from 32% post IPO.

MCX valuation has zoomed to Rs 6,000-7,000 crore (nearly USD 1.5 billion). FT has placed stake to institutions at USD 1.2 billion valuation.

Reliance Infratel gets SEBI nod for IPO

2008-05-15T14:21:00.000+05:30

Reliance Infratel, a subsidiary of Reliance Communication, has received SEBI nod for its initial public offering, IPO. The company is looking to raise Rs 5,000-6,000 crore via 10% dilution,

Reliance Communication holds 95% stake in Reliance Infratel.

Reliance Capital's net profit tops Rs 1020 cr

2008-05-08T22:11:00.000+05:30

Reliance Capital has posted a net profit of Rs 1020 crore for the year ended March 31, 2008, which is almost 60 per cent higher than the Rs 640 crore profit it registered in the previous fiscal.

The total income increased from Rs 880 crore to Rs 2070 crore, to register an increase of Rs 1190 crore, as per the company's audited accounts released here Tuesday.

Anu’s Labs IPO opens May 12; Price band fixed at Rs 200-210

2008-05-06T22:27:00.000+05:30

Anu’s Laboratories, engaged in the manufacture of basic, advanced intermediates and fine chemicals and supplying them to various drug manufacturers, proposes to enter the capital markets on 12th May 2008 with a public issue of 38,20,000 Equity shares of Rs 10 each through 100% book building process. The price band has been fixed at Rs 200 to Rs 210 per equity share of Rs 10 each and the issue closes on 15th May 2008.

After allowing for reservation of 2,00,000 equity shares for eligible employees, the net issue to the public will be 36,20,000 equity shares, constituting 31.63% of the post issue paid-up capital of the company. The IPO has been graded by ICRA and has assigned “ICRA IPO Grade 2” to the Initial Public Offering. Almondz Global Securities Ltd, is the BRLM and Karvy Computershare Pvt Ltd is the Registrar for the Issue. The Equity shares are proposed to be listed on BSE.

Anu’s Laboratories was incorporated in 1996 for manufacture of Bulk Active Pharma Ingredients and Intermediates for drug molecules and was promoted by Mr. K. Hari Babu. Mr. N.S. Walimbe joined as co-promoter in 1997. The present manufacturing plant of Anu’s Laboratories Limited is located at Chilakamarri Village, Shadnagar of Mehboobnagar district in Andhra Pradesh. The Company is engaged in manufacture of Basic & Advanced Intermediates and fine chemicals and is presently having manufacturing facilities for key intermediates like 2,4-Dichloro-5-Fluoro Acetophenone (DCFA) (an intermediate for synthesizing quinolone antibiotics like ciprofloxacin); Chlorohexanone (key intermediate in the manufacture of cardio vascular medicine) and Methyl-4 (4-Chloro 1 oxo butane) a, a Di-Methyl Acetate (an intermediate in the manufacture of Fexofenadine an anti allergic drug).

The Company had started export of its products in the year 2002 to Israel followed by exports to other countries like Italy, Japan, France, USA and Singapore. Currently, its exports comprise of 19.97% of its total turnover.

The Company’s total income during the Financial Year ended March 31, 2007 was Rs 12,129.52 lakhs as against Rs. 9,533.93 lakhs in the Financial Year ended March 31, 2006 and the net profit during the corresponding period was Rs 1,359.15 lakhs against Rs. 557.25 lakhs respectively. The total income and the net profit for the nine months period ended December 31, 2007 were Rs. 11,382.26 lakhs and Rs. 1,312.36 lakhs respectively.

In order to diversify and expand its business activities by means of forward integration, the Company has decided to expand its operations by setting up a new plant for manufacturing of drug intermediates including Active Pharmaceutical Ingredients (APIs) at Vishakhapatnam at an estimated cost of Rs 55.09 crores and setting up a pilot plant for carrying out Contract Research and Manufacturing (CRAM) at Vishakhapatnam at an estimated cost of Rs 8.34 crores. The long term working capital requirements would be Rs 16.67 crores. The Company plans to meet the aforesaid objects by means of issue proceeds and internal accruals.

Adani Power files draft prospectus with SEBI

2008-05-05T15:45:00.000+05:30

Adani Power Ltd, an Adani Enterprises company, has filed draft prospectus with SEBI on Thursday for raising Rs 5,630 crore through IPO to finance its six proposed thermal power projects in Gujarat, Maharashtra, and Rajasthan totalling 9,900 MW at an estimated investment of Rs 43,139 crore.

According to the DRHP, the company proposes to issue a total of 29.69 crore shares of Rs 10 each accounting for 14.35 per cent of the post-issue paid-up capital.

The proposed issue will lead to dilution of the controlling stake of Adani Enterprises in Adani Power from 86.45 per cent to 74.04 per cent. The company had previously allotted approximately 13.55 per cent shares to two PE firms — 3i Power Investment Ltd and Grow Power Trust — at an average price of Rs 144 a share.

Commercial production

While company sources were not available for comment, the industry sources told Business Line that Adanis may time the issue by third-quarter, barely a few months before they were scheduled to start commercial production from 1,320 MW Mundra I and II thermal power projects.

Both the projects are located in Mundra SEZ in Gujarat and are scheduled to commence commercial production in phases beginning January 2009. The projects are reportedly being implemented in a record 30 months.

Overall, the company is implementing 4,620 MW thermal project estimated to cost Rs 19,106 crore at Mundra. While I and II are of sub-critical generation capacity category, Mundra-III (1,320 MW) and Mundra IV (1,980 MW) are of super critical category and will be completed by 2011. APL has already awarded the EPC contracts and firm agreements for coal supplies from Adani group-owned mines in Indonesia. Power purchase agreements are also reached for Mundra-I, II and III.

Mundra apart, sources say that APL proposes to set up 1,980 MW Rs 9,263 crore thermal power plant at Tiroda in Maharashtra. The company is already awarded a coal block by the Union Coal Ministry for the phase-I of the project, which is expected to achieve financial closure shortly.

Adanis have also proposed to set up 1,980 MW (Rs 8,810 crore) generation capacity at Dahej in Gujarat and 1,320 MW (Rs 5,889 crore) at Kawai in Rajasthan by 2011-12.

Generation apart, the company will also create a transmission lines for evacuation of power from all its projects to the national grid. The total investment in transmission project and railway lines for coal supply is projected at Rs 2,393 crore. The cost of development of the mining blocks is estimated at Rs 790 crore, reports The Hindu Business Line.

GMR Energy to offload 10% stake through IPO

2008-05-05T15:42:00.000+05:30

It could well be the next big ticket energy IPO. According to sources, GMR Energy, the wholly owned energy arm of infrastructure major GMR Group is looking at offloading 10% stake through an IPO. CNBC-TV18's Abhijit Neogy reports from Istanbul that the company is looking at raising around USD 500 million from the market.

GMR Energy, the wholly owned energy arm of infrastructure major GMR Group is planning to shed 10% stake through an IPO which may hit the markets after they stablise. Part of the proceeds may be used to fund the group's possible foray into ultra mega power projects.

GM Rao, the Chairman of GMR Group, said, "It's early days yet, there is an internal financial rejig on the table, there are a whole host of strategic initiatives which we are drawing up, but it's still premature."

Sources say, the energy arm is looking to mop up atleast USD 500 million from the market which values GMR Energy at USD 5 billion or Rs 20,000 crore, but for the moment though, the group has tied up with private equity funds to part finance its energy projects in India which are on stream.

GMR Energy has a basket of about 6000 MW of power projects in India, both thermal and Hydel, out of which 1,000 MW is Brownfield expansion at its Orissa thermal power plant.

The company hopes to take its India energy basket to 15,000 MW by 2015. GMR Energy is also planning to bid for generation, transmission and distribution of power in Turkey which is about to be privatised.

GMR Energy has raised adequate external commercial borrowings in December 2007 and this has already been partly put to use by buying energy assets like coal mines in South Africa, the possible IPO as well as unutilised ECB proceeds will act as a warchest to acquire other energy and infrastructure assets abroad for the group.

The GMR group has soaring ambitions in the fields of energy and infrastructure. In infrastructure specifically, there are long gestation periods that the company has to contend with. But the big question is, can GMR's execution track record now match up to its soaring ambitions?

Anu's Labs IPO opens on May 12, price band Rs 200-210

2008-05-05T15:36:00.000+05:30

Anu's Laboratories is coming out with an initial public offering of 38,20,000 shares at a price band of Rs 200 to Rs 210 per equity share of face value of Rs 10 each. The issue price is 20 times the face value at the lower end of the price band and 21 times the face value at the higher end of the price band. The issue will open for subscription between May 12 and May 15, 2008.

Gokul Refoils IPO opens on May 8, price band Rs 175-195

2008-04-25T12:41:00.001+05:30

Gokul Refoils and Solvent, a Gujarat based company, engaged in the business of solvent extraction, refining of Edible oils and Vanaspati manufacturing, has received ROC clearance and has fixed a price band of Rs 175 to Rs 195 for its forthcoming initial public offer (IPO) of 71,58,392 equity shares of Rs 10 each for cash.

The net issue to the public comprises of 70,83,392 equity shares and 75,000 equity shares have been reserved for the employees. The issue will constitute 27.14% of the fully diluted post issue paid up equity share capital of the company. The face value of equity shares of is Rs 10, floor price is 17.5 times of the face value and the cap price is 19.5 times of the face value.

The company intends to raise Rs.139.59 crores at the cap price of the price band. The 100% Book Build Issue Opens on Thursday May 8, 2008 and Closes on Tuesday May13, 2008.

About Gokul Refoils and Solvent Limited

Gokul Refoil was incorporated in 1992 and is primarily engaged in the business of Solvent Extraction, refining of Edible oils and Vanaspati manufacturing. The company’s manufacturing facilities at Sidhpur, Gandhidham & Surat, have the ability to provide comprehensive range of oil products. Moreover, Gokul is one of the few players in the vegetable oil industry in India that are able to produce a broad variety of oil & derivative products. The manufacturing facilities are versatile in nature, can process various types of oils including palmolein, soyabean, cotton, sunflower, groundnut and mustard. The existing setup is such that the company can switch over from processing of one type of oil to another type of oil with no down time.

Financials:

Gokul Refoils consolidated total income for the financial years ended March 31, 2007 was Rs. 1599.86 crores and Rs.1347.82 crores for the period ended Nov, 2007. Profit after tax for the FY07 was Rs. 25.73 crores, and Rs.41.83 crores for the period ended Nov 30, 2007. Company’s sales have grown at a CAGR of 39.30% over the last 5 financial years and its PAT has increased at a CAGR of 41.16% over the last 5 financial years and EPS reported a growth of 24 % in last 3 years.

Present Business Activity & its Products:-
Today the group’s interest includes Refining of Edible oil, Castor oil & its derivatives, Vananspati, Solvent Extraction & Power Generation and Commodity trading in the domestic as well as international markets At present Gokul Refoils and Solvent Limited has 680 TPD of seed processing, 600 TPD of Solvent Extraction, 1200 TPD of refining & 200 TPD of Vanaspati manufacturing. The units are situated at: Sidhpur (Sidhpur unit, North Gujarat), Anjar (Gandhidham unit, Kutch), Navi Pardi (Surat unit, South Gujarat) & Kutch (Wind mills).

Anu's Labs files for IPO

2008-04-25T12:39:00.000+05:30

Hyderabad-based Anu's Laboratories has filed draft red herring prospectus with Sebi to raise around Rs 800 million from the capital markets.

Anu's Labs is the market leader in producing Dichloro-5-Fluoro Acetophenone, or DCFA, a key intermediate for ciprofloxacin. The company has over 60% market share in the country.

The company plans to deploy the proceeds raised from the initial public offering to set up an intermediary plant and contract research facility at Pharma City in Visakhapatnam, reports The Hindu Business Line.