Tuesday, November 01, 2005

Union Bank to go for public issue of 4.5cr shares


Union Bank of India will announce its second public issue of 4.5 crore shares in January next to cap its Capital Adequacy Ratio, CAR, report agencies.
The fixation of price band and other formalities is being worked out and the final figure of public issue will be announced later, UBI (Retail Banking) General Manager V S R Murthy said.
Reviewing the overall performance of the bank whose net profit stood at Rs 301 crore (Rs 3.01 billion) for the Q2, Murthy said UBI achieved a total business of Rs 1,16,171 crore (Rs 1,161.71 billion) as on September 30, 2005.
He said in the process of extending various concessions to its retail customers, the Bank has entered into tie-up with various leading automobile giants, builders, educational institutions and computer companies.

Educomp to mop up Rs 60cr through IPO


Educomp Solutions, a new age education company, is planning to expand its global business with a focus on the North American market. To materialise this plan, the company, is planning to go in for an IPO in the second or third week of November through the book-building route and will issue 40 lakh shares, reports DNA.
The 25-crore (Rs 250 million) networth company is looking at mopping up Rs 50-60 crore (Rs 500-600 million) from the market.
“Educomp intends to invest Rs 16 crore (Rs 160 million) for expansion of its smart class programme which is a digital library that can be used by both teachers and students. An investment of Rs 30 crore (Rs 300 million) is planned for stepping up business with the government, Rs 10 crore (Rs 100 million) for content development capability, and another Rs 10 crore (Rs 10 million) for acquisition of smaller entities. We will spend roughly about Rs 8 crore (Rs 80 million) over the next two years for global operations,” explains Shantanu Prakash, Director, Educomp Solutions.
Any shortfall in funds will be taken care by internal accruals, clarifies Prakash.
“We look at reaching out to around 10 million learners through our products and services by 2008 and aim to be among top 10 learning companies in the world,” says Prakash.
Educomp registered a turnover of Rs 32.2 crore (Rs 322 million) for the year 2004-2005 and has grown 25% year-on-year over the last few years. Presently, the company is integrating technology in schools by treading the public-private partnership. Like a one-stop shop, it provides hardware and software to government and private schools.
The company’s smart class programmes has many takers in Singapore while in the US, it is carrying out pilot projects in Santa Barabara schools.
“For each school here, we invest between Rs 40-80 lakh, and enter into a long term, three-year pact with the school. The school does not have to make any lump-sum repayment. Instead, every student pays a certain amount per month,” explains Prakash.
“Currently our business is going strong in all regions, but we really need to tap private schools in the eastern market,” adds Prakash.
The company is all set to address the US market, world’s largest education market, that has a K12 content spend of over USD 10.2 billion in 2004, an online market spend of over USD 4 billion and an assessment market spend of USD 2 billion as entry potential.
“On the domestic front, Educomp will try to leverage its leadership position to further strengthen its market share in professional development and turnkey solutions for the schools,” says Prakash.
Large market spend on digital divide initiatives - in the region of Rs 1,200 crore (Rs 12 billion), (FY2004-2007) and private initiatives estimated to be in the region of Rs 2,200 crore (Rs 22 billion) over the next three years forms a bulk market potential for the company in the coming years.

ABG Shipyard fixes price band for IPO - Rs 155-185


ABG Shipyard, the largest private sector shipyard in India, has announced a price band of Rs155-185 for determining the issue price of its initial public offering, IPO, of 85 lakh equity shares of Rs 10 each for cash at a premium to be decided through a book-built process, according to a release.
Of the total issue offer, the company has reserved 200,000 equity shares to be offered to its employees. Of the balance net issue offer, 60% of the issue are reserved for allotment to qualified institutional buyers on a discretionary basis and 10% is reserved for allotment to non-institutional buyers on a proportionate basis. The balance 30% of the net issue offer is to be allotted to retail investors on a proportionate basis.
The equity shares are proposed to be listed on The Stock Exchange, Mumbai.
The company is an established manufacturer of marine ships, including bulk carriers, deck barges, interceptor boats, anchor handling supply ships, diving support ships, tugs and offshore vessels. The company since 1990 has delivered so far 88 ships of various types to domestic and international customers. The company has an order book position of 27 ships, which are under construction.
The book running lead managers for the issue are IL&FS Investsmart and ICICI Securities.

Sunday, October 30, 2005

Shree Renuka Sugars closes below its issue price of Rs 285


Shree Renuka Sugars closed below its issue price. The stock closed at Rs 261.85, with volumes of 32,20,953 shares on the BSE. It touched an intraday high of Rs 325 and an intraday low of Rs 258. On the NSE, the stock closed at Rs 260.30, with volumes of 49,81,651 shares. It touched an intraday high of Rs 315 and an intraday low of Rs 257. The company listed today on the stock exchanges. It opened at Rs 310 on the BSE and at Rs 315 on the NSE. The stock was issued at Rs 285.
It entered the capital market on October 7 to raise Rs 100 crore (Rs 1 billion). There was also a greenshoe option aggregating Rs 10 crore (Rs 100 million). The issue was being made through a 100% book building process and the price band was Rs 250-300 per equity share. JM Morgan Stanley was the book running lead manager and Edelweiss Capital was co-book running lead manager for the IPO.

Southern Online Bio Tech lists on BSE at Rs 17


Southern Online Bio Technologies has listed today on the BSE. The stock opened at Rs 17. It was issued at Rs 10. Southern Online Bio Technologies has listed today on the BSE. The stock opened at Rs 17. Its BSE ID is 532669. It was issued at Rs 10.
At 10:56 am, the share is quoting at Rs 13.05, with volumes of 7,91,725 shares. It has touched an intraday high of Rs 17 and an intraday low of Rs 13.05. The company entered the capital market on September 14, with a public issue of 1,38,40,916 equity shares. UTI Securities was the lead manager to the issue and Aarthi Consultants was the registrar.

Check IPO Allotment Status for Shree Renuka Sugars - Listing on 31st Oct 05


Shree Renuka Sugars is to list on October 31, 2005 on the BSE and NSE. Its BSE ID is 532670 and NSE ID is RENUKA. The stock was issued at Rs 285.
The company entered the capital market on October 7 to raise Rs 100 crore (Rs 1 billion). There was also a greenshoe option aggregating Rs 10 crore (Rs 100 million). The issue was being made through a 100% book building process and the price band was Rs 250-300 per equity share.
JM Morgan Stanley was the book running lead manager and Edelweiss Capital was co-book running lead manager for the IPO.
Check IPO Allotment Status for Shree Renuka Sugars

IPO Allotment Status for Southern Online Bio Technologies - Listing on 31st Oct 05


Southern Online Bio Technologies is to list on October 31, 2005 on the BSE. Its BSE ID is 532669. The stock was issued at Rs 10. The company entered the capital market on September 14, with a public issue of 1,38,40,916 equity shares. UTI Securities was the lead manager to the issue and Aarthi Consultants was the registrar.
IPO Allotment Status for Southern Online Bio Technologies

Saturday, October 29, 2005

Prithvi Information IPO subscribed 16.31 times


Prithvi Information Solutions IPO closed yesterday. The issue has been subscribed 16.31 times, as per the NSE website.
The QIBs portion has been subscribed 12.45 times. The non-institutional investors portion has been subscribed 37.05 times. The retail investors portion has been subscribed 17.07 times. The employees portion has been subscribed 1.63 times.
The company entered the capital market on October 25, with a public issue of 50 lakh equity shares of Rs 10 each for cash.
Its price band was fixed at Rs 250-270 per equity share of face value of Rs 10 each.
The book running lead managers for the issue were Anand Rathi Securities, Karvy Investor Services and SREI Capital Markets. The equity shares of the company will be listed on the BSE and NSE.

Friday, October 28, 2005

Gujarat State Petronet's IPO in December


Gujarat State Petronet's, GSPL, initial public offering, IPO, of 13.8 crore equity shares will hit the market in December, report agencies.
The company has filed the draft red herring prospectus for the IPO of 25.45% of the post-issue equity with the Securities and Exchange Board of India.
GSPL, the pipeline subsidiary of Gujarat State Petroleum Corp, GSPC, plans to use the proceeds of the IPO for funding its proposed Rs 1,450 crore (Rs 14.50 billion) expansion of its pipeline network in Gujarat, according to the prospectus.
Kotak Mahindra, HSBC Securities and Capital Markets and ICICI Securities are the book running lead managers of the issue being done by the book-building route.
Half of the IPO has been reserved for qualified institutional buyers, QIBs, while retail investors will get 35% of the 13.8 crore shares. The remaining 15% would be for non-institutional buyers. Of the reservation for QIBs, 5% has been set-aside for Mutual Funds.
Post-issue, GSPC's equity in the company would come down to 39.15% from current 52.52%. India Development Fund will hold 13.28%, IDFC 2.77%, IDBI 4.15% and UTI Bank would hold 2.31% in the enhanced equity base of the GSPL.
GSPL, in its prospectus, stated that of the Rs 1,450 crore (Rs 14.50 billion) required to build 742-km of new pipeline network by July 2007, promoters are bringing in Rs 105.36 crore (Rs 1.05 billion) - GSPC Rs 5 crore (Rs 50 million), IDBI, Rs 4.5 crore (Rs 45 million), IDFC Rs 30 crore (Rs 300 million) and UTI Bank Rs 25 crore (Rs 250 million). It will raise Rs 875.715 crore (Rs 8.75 billion) as debt and another Rs 105.635 crore (Rs 1.05 billion) would be from internal accruals.

Hindalco charts IPO plans for Birla Minerals


Hindalco, India’s largest metals company, is exploring options to float an initial public offer for its wholly-owned Australian mining unit, Birla Minerals, to reduce the subsidiary’s debt and also fund future mining operations, reports The Economic Times.
“It’s still in the early stages. Our bankers are working on the details and nothing has been finalised,” told a senior executive of the Aditya Birla group.
The options, which could aim at reducing the Aditya Birla group holding in Birla Minerals, could also include a possible listing of the subsidiary in Australia, the executive added.
Hindalco acquired the Nifty Copper Mine in ‘03, along with the rights to explore seven other mines, from Straits Resources for AUD 79.8 million or about Rs 255 crore (Rs 2.55 billion). Later Birla Minerals also acquired Queensland’s Mt Gordon Copper Mine, for close to Rs 65 crore (Rs 650 million).
“In both the deals, a majority part of the acquisition cost, about 60%, was financed by debt, while the balance was met by equity,” the executive said. “It’s to reduce that debt, we’re considering this IPO,” he added. The executive, however, declined to provide details on the size of the debt. The mines were acquired to improve copper concentrate supply to Hindalco’s smelter operations in India.
Copper concentrate is refined electrolytically at smelters to make the metal copper, which is used in industries such as automobiles and in the construction sector.
Hindalco recently expanded its copper smelter capacity at Dahej to 5,00,000 tonnes. Since more than 2.5 tonnes of concentrate is used to make a tonne of copper, Hindalco would currently need about 1.5 million tonnes of concentrate for its expanded smelter. At the time of the acquisition, Hindalco Chairman Kumar Mangalam Birla had said that his company would “like to have about 25-40% of concentrate requirement coming from our own mine.” Hindalco meets the remaining through spot purchase and long term contracts.
Birla Nifty has a capacity of 25,000t of copper cathodes and a large undeveloped copper sulphide resource estimated at around 1.9mt of copper equivalent. The Nifty project has a total resource of 148mt of ore. Hindalco had also conducted a feasibility study for developing an underground mine and a copper concentrate plant with a projected capacity of 2.5mt at Birla Nifty.
Commodity players are currently focusing on increasing their raw material strengths due to expanded facilities and a growing demand from countries such as China and India.
Players in industries such as steel, aluminium, copper and zinc are scouting potential mining deposits for acquisitions. While India has rich reserves of bauxite - used for aluminium production, and iron ore - used in steel, it has very little presence in copper concentrates.

Air India IPO may raise up to Rs 3800cr


The government may raise between Rs 2,400 (Rs 24 billion) and Rs 3,800 crore (Rs 38 billion) by taking India’s international flag carrier Air India, AI, to the capital market, reports The Economic Times.
Merchant banking sources base this on the assumption that government will make available 20-25% of the airline stock to investors in the IPO, which going by its paid-up capital of Rs 153.84 crore (Rs 1.53 billion), will translate to around 3/3.82 crore shares (of face value Rs 10).
If the Jet Airways book building price band (Rs 950/1,100) is taken as the benchmark, even after discounting because it’s a government company, the AI share may be placed at Rs 800/1,000. The IPO can fetch between Rs 2,400/3,000 crore (Rs 24-30 billion) for 20% stake at Rs 800 and Rs 3,000-3,800 crore (Rs 30-38 billion) for 25% equity at Rs 1,000.
Sources said this is a ballpark estimate and the final numbers will depend on the airline’s valuation and how much money government wishes to raise through this process.
It will also depend on whether the government still proposes to use these funds - partly or fully - to support the airline’s USD 7/8 billion fleet expansion programme.
While AI’s paid-up capital is a modest Rs 153.84 crore (Rs 1.53 billion), its authorised capital is Rs 500 crore (Rs 5 billion). While technically, the government can float shares with total face value of around Rs 150 crore (Rs 1.50 billion) (15 crore shares @ Rs 10 each giving the new investors just under 50%) and retain 51% or more in the company, the civil aviation minister has already given indications that not more than 20-25% stake will be sold.
Jet Airways, the only other airline to hit the market recently, raised nearly Rs 1,900 crore (Rs 19 billion) by offloading 20% equity, leaving the promoters with 80% stake.
DSP Merrill Lynch, which has been engaged by AI to draw a roadmap leading to the IPO, is likely to revert to the airline in November with its report.
While the valuation of the airline will depend on several factors, sources say of importance will be its firm plan to acquire 68 planes to grow its international market share and brand eminence.
The airline also holds critical landing slots in a string of international airports, which has become a tradeable commodity for many carriers in the current scenario of high competition and demand.
The airline has also been consistently clocking profits for the past four years. Despite the sharp jump in its fuel bill, AI still expects to stay profitable this fiscal. Last fiscal; its EBITDA was Rs 1,200 crore (Rs 12 billion), net profit Rs 92.32 crore (Rs 923.2 million), topline of Rs 7,500 crore (Rs 75 billion).
This year, the airline is aiming at a turnover of about Rs 8,200 crore (Rs 82 billion), which clubbed with the revenues of group companies (Hotel Corpn of India, AI Charters, AI Air Transport etc), may well touch the USD 2 billion mark (Rs 8,500/8,600 crore @Rs 44 to a dollar).

Kingfisher Airlines to raise Rs 900cr through IPO


Vijay Mallya-promoted Kingfisher Airlines plans to raise about Rs 900 crore (Rs 9 billion) through its IPO, which will come up in the next six months, reports The Financial Express.
Addressing an investor’s meet in Mumbai, Mallya said the company is yet to finalise an advisor for the IPO, and is currently in talks with merchant bankers for the same.
As part of it expansions plans, the UB Group plans to operate at least 43 premium flights on a daily basis by May 2006, and then extend it to 65 flights on daily basis by November 2006.
Plans are also on the anvil to introduce new routes to Kolkata to Jaipur, and Mumbai to Jaipur. Currently, Kingfisher Airlines is operating flights from Ahmedabad, Bangalore, Mumbai, Kochi, Delhi, Goa, Hyderabad, Chennai and Pune.
The airline started operating in May 2005, and has a fleet of seven Airbus.

Celeberity Fashions to come out with IPO


Apparel manufacturer Celebrity Fashions is planning to come out with an IPO to raise funds for its expansion plans, report agencies.
The company will issue 4,50,000 equity shares of Rs 10 each to part finance its plans for opening more factories and outlets of its domestic brand 'Indian Terrain' across the country, a company release said. The issue will constitute 25.35% of the fully diluted post issue paid up capital of the company.
The company has already filed a draft red herring prospectus with Sebi for the purpose.

Thursday, October 27, 2005

Piramyd Retail fixes price band for IPO


Piramyd Retail, one of India's major retailers with presence in the lifestyle retail and food, home and personal care segments has fixed the price band for its forthcoming initial public offering as Rs 120-140, according to a release.
The price band has been approved at the meeting of the board of directors of Piramyd Retail held on October 25, 2005.
Piramyd Retail is entering the capital market with an initial public offering of 90,00,000 equity shares of Rs 10 each for cash, at a premium to be determined through the book building process.
The issue includes a promoter contribution of 40,00,000 equity shares and the balance 50,00,000 equity shares comprise the net offer to public.
Of the net offer to public, at least 50% will be reserved for allotment on a discretionary basis to qualified institutional buyers, not less than 15% will be available for allotment to non-institutional investors and not less than 35% will be available to retail investors on a proportionate basis.
The book running lead managers for this issue are Enam Financial Consultants, DSP Merrill Lynch and Edelweiss Capital.

Reliance Info contemplating $1 bn pre-IPO private placement


Cellular major Reliance Infocomm, part of the Anil Dhirubhai Ambani Enterprises, ADAE, Group, is believed to be contemplating a USD 1 billion pre-IPO private placement, according to banking and industry sources, reports The Economic Times.
The ADAE Group is looking to sell around 10% of Infocomm’s equity, which would value the company at around USD 10 billion, or just under Rs 44,000 crore (Rs 440 billion), if the company does manage to obtain such a valuation in the market.
Private equity majors active in India such as Newbridge and Blackstone are believed to have been approached by the ADAE Group, sources said. When contacted, a senior ADAE Group official strongly denied that any such private placement was in the offing. “Nothing of the kind is being planned,” the official said.
However, officials at a large private equity fund confirmed that preliminary discussions had been held with the ADAE Group. Sources familiar with the situation said the ADAE Group has so far informally sounded out some potential investors.
A formal mandate may be issued later depending on the response, sources said.
Sources said private equity investors may want some say in the functioning of Reliance Infocomm for such a major investment. That may be a sticking point as the ADAE Group may not part with much of management control.
Inducting a major investor would help increase the valuation of Reliance Infocomm, which is widely expected to go in for a public issue some time next year.
Reliance Infocomm had a valuation of around Rs 22,500 crore (Rs 225 billion), going by the Rs 32 per share at which RIL converted its preference shares in Reliance Infocomm, as part of the settlement between Reliance Industries Chairman Mukesh Ambani and his brother, Anil, Chairman of the newly-formed ADAE Group.
Bharti Tele-Ventures, India’s most valuable telecom company, had a market capitalisation of Rs 62,203 crore (Rs 622.03 billion) at Wednesday’s closing prices.
Reliance Infocomm posted a net profit of Rs 51 crore (Rs 510 million) on a turnover of Rs 5,387 crore (Rs 53.87 billion) in ‘04-05. The previous year, ‘03-04, it had a loss of Rs 170 crore (Rs 1.70 billion) on a turnover of Rs 2,707 crore (Rs 27.07 billion).
Reliance Infocomm had held discussions with potential private equity investors late last year, when it was controlled by Mukesh Ambani. Those discussions were put on hold when the dispute between the Ambani brothers became public. They had been revived in the past few weeks, sources said

Dynemic Products files IPO prospectus


Dynemic Products has filed its draft prospectus with Sebi for IPO. It is coming up with a public issue of 44.21 lakh shares of Rs 10 each for cash at a premium of Rs 25, reports DNA.

Bharat Overseas Bank plans Rs 100cr IPO


Bharat Overseas Bank is planning Rs 100 crore (Rs 1 billion) IPO in next few months.

Wednesday, October 26, 2005

Prithvi Information IPO subscribed 2.54 times


Prithvi Information Solutions entered the capital market on October 25, with a public issue of 50 lakh equity shares of Rs 10 each for cash. The issue has been subscribed 2.54 times till 4 pm, as per the NSE website. The QIBs portion has been subscribed 4.41 times.

Its price band has been fixed at Rs 250-270 per equity share of face value of Rs 10 each. The issue closes on October 28, 2005.

Comprising 4,50,000 equity shares of Rs 10 each reserved for the eligible employees of the company and a net offer to public of 45,50,000 equity shares of Rs 10 each.

The issue is being made through the 100% book building process wherein upto 50% of the issue shall be issued on a discretionary basis to Qualified Institutional Buyers, QIBs.

Further, atleast 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and atleast 35% of the issue shall be available for allocation on a proportionate basis to retail bidders.

The book running lead managers for the issue are Anand Rathi Securities, Karvy Investor Services and SREI Capital Markets and the syndicate members are Enam Financial Consultants and Karvy Stock Broking.

The equity shares of the company will be listed on the BSE and NSE.

GVK Power files draft RHP with Sebi for IPO


GVK Power and Infrastructure, GVKPIL, has filed the draft red herring prospectus, RHP, with Sebi and proposes to enter capital market to support expansion plans, reports The Hindu Business Line.

According to a statement from the GVK Power, it proposes to soon enter the market with an initial public offer of 82,75,556 equity shares of face value of Rs 10 each through 100% book building process.

The GVK Power is part of the diversified GVK Group headed by Chairman, G V K Krishna Reddy with interests in power, roads, urban infrastructure, biosciences, hotels and manufacturing. The company has identified power and infrastructure sector as core areas for future growth.

GVKPIL owns 53.96% stake in GVK Industries, which manages two power plants, the 216 MW Jegurupadu phase I and the 220 MW Jegurupadu phase II to be commissioned by December 2005.

The company is entering capital market to raise funds and increase ownership in Gautami Power to 51% by subscribing to the equity of GPL which is setting up a 464 dual fuel combined cycle plant in Andhra Pradesh.

The issue will constitute 35% of the fully diluted post issue paid up capital of the company. JP Morgan Stanley and Kotak Mahindra Capital Company have been chosen book running managers.

M&M to sell 1cr shares of M&M Financial Services via IPO


Mahindra & Mahindra, M&M, is to sell 1 crore shares of M&M Financial Services, MMFSL, (14.25% stake) via initial public offer, IPO. MMFSL IPO is to be mix of fresh issue and offer for sale. MMFSL board is to meet tomorrow to decide size of new issue. M&M holds about 97% in MMFSL. M&M is also evaluating opportunities for IPOs of other subsidiaries.The company announced its second quarter results today. Its Q2 net profit is up 27.9% at Rs 157.2 crore (Rs 1.57 billion) from Rs 122.9 crore (Rs 1.22 billion).At 2:26 pm, M&M is quoting at Rs 364, up Rs 2.95, or 0.82%. It is trading with volumes of 1,09,444 shares. It has touched an intraday high of Rs 366.85 and an intraday low of Rs 358

QuEST plans IPO to fund overseas buys


Engineering solutions provider QuEST could perhaps be the first in its space in the country to talk of a public offer. QuEST is starting to first upgrade its Bangalore centre into a full-fledged Indian entity prior to tapping the capital market in 2006 or 2007 to raise around Rs 100 crore (Rs 1 billion), its President and Co-Founder, Aravind Melligeri said, reports The Hindu Business Line.
"We are looking at a timeframe of 12-18 months for the IPO. Right now, we are focussing on business growth," Melligeri said, adding that the formalities for converting it to an Indian company had begun.
The proceeds would finance the New York-based company's acquisition plans overseas. QuEST made its first US acquisition in 2000, three years after Melligeri and Ajith Prabhu formed it. In 2003, QuEST got its first venture funding of USD 6 million from the Carlyle Group, which picked up 24% equity in the company.
Its largest and 650-strong Indian off-shoring hub offers engineering solutions to global original equipment manufacturers such as GE, Smiths Aerospace, Pratt & Whitney, Mitsubishi and Kawasaki in the aerospace, automobile, power, oil, gas and engineering segments. During 2004-05, the company generated revenues of USD 20 million, which it expects to touch USD 28 million this fiscal.
Melligeri said QuEST also plans to extend its design activities to manufacturing solutions. It already does prototyping and has a global supply chain in place.
Aerospace engineering solutions account for 30% of QuEST's revenues, said Bijoy George, Vice-President (Marketing and Strategic Initiatives). For players such as QuEST, the aircraft acquisitions of Indian Airlines and Air India, with a potential offset business of USD 880 million-USD 1 billion each from Airbus and Boeing, are of great interest, he said.
Also of promise are upcoming projects of PSU aircraft maker Hindustan Aeronautics, which plans to outsource 35% of engineering works this year - and the indigenous Kaveri aero-engine programme of the Gas Turbine Research Establishment.
If IT made outsourcing to India a profitable trend in the nineties, engineering solutions and product development outsourcing could be the next best thing for the country, a fact that Nasscom has sounded the domestic industry out about, George said. It would be a much smaller pie of around USD 2-3 billion compared to IT outsourcing, which hovers around USD 18 billion today, he said. The trend has been rising since 2001, riding on the same ingredients that clicked for IT: a low-cost talent pool, knowledge of English and good IP protection for high-end, low volume services.
To address this growing market, QuEST has tied up with five engineering colleges to build up human resources through industry-relevant training. Nearly 250 of its Indian employees are from these campuses.

Vivek plans IPO


Vivek, the largest retailer in consumer durables and appliances in the country, is considering option of either going for an IPO or private placement of shares to fund expansion and a decision will be taken in the next three months, reports The Hindu Business Line.The company is also open to the idea of roping in a strategic investor from abroad, but this will have to wait for a government decision on allowing FDI in retail trade, according to B A Srinivasa, Director of Vivek, Chennai. He said that the company has had several rounds of discussions with some of the top merchant bankers and it was in the process of deciding on the two options. He expected the decision to be taken in three months and would be put in force within three months after that. Asked about the size of the issue planned, he said that till three months back, the company was considering the question of expanding its business within the South. But after discussions with the merchant bankers and in view of speed at which FDI is being welcomed, there were suggestions to go for a pan-Indian presence. The issue was being debated internally and depending on the future expansion plans, the company would like to raise anywhere between Rs 50 crore (Rs 500 million) and Rs 100 crore (Rs 1 billion). To a question on what made better business sense - going for an all-India expansion or limiting it to a Southern foray - he said that the question was whether one should take a measured step forward or take a plunge by choosing to take the market by storm. The issue of how much one can handle and deliver also should be considered. Asked whether he was open to the idea of inviting FDI in Viveks, Srinivasa said; "At this stage we are open." He added that it would consider what was good for the company when the government permitted it. It would consider the option of getting a strategic investor or a financial investor in the company and a decision, based on a systematic study, would be taken. He said that the decision on FDI in his company would be independent of the decision to go for an IPO or private placement and would come after the IPO or private placement. He welcomed the idea of opening retail trade to FDI and said in whichever country this had happened, the local economy has boomed.

GMR to pump Rs 1500-1700cr for expansion, may float IPO


Infrastructure company GMR Group is planning to invest in Rs 1,500-1,700 crore (Rs 15-17 billion) over the next three years to undertake new projects and initiatives, report agencies.“We will invest Rs 1,500-1,700 crore (Rs 15-17 billion) to undertake new projects and initiatives spread across sectors including airports, roads and manufacturing," GMR Group Director for Roads and Finance G B S Raju said yesterday.The company is looking at various options to fund this plan including an initial public offer, IPO, or private equity, he added.Meanhwile, the company has bagged won three road projects at worth Rs 1,500 crore (Rs 15 billion) for a total length of 205 km.“The three road projects for total length of about 205 km will be at an estimated cost of Rs 1,500 crore (Rs 15 billion) on Build, Operate and Transfer, BOT, basis for a concession period of 20 years," he said.The first project is strengthening, widening and improvement of the existing two lane road into four lane road between Adloor Yellareddy and Kalkallu/Gundla Pochanpalli on NH-7 covering a distance of 100 km structured on BOT on an annuity model at cost of about Rs 650 crore (Rs 6.50 billion), he said.The second project is strengthening and improvement of the stretch between Shivrampalli/Faruknagar and Jadcherla on NH-7 in Andhra Pradesh of 70 km, which would be on BOT using toll model at a cost of Rs 450 crore (Rs 4.50 billion), he added.Earlier in June, the Group won the bid for the expansion of Ambala-Chandigarh corridor in the states of Haryana and Punjab covering a distance of 35 km on BOT using the toll mode at Rs 400 crore (Rs 4 billion).

Royal Orchid Group plans IPO, MphasiS Chairman buys stake


Software company MphasiS Chairman Jerry Rao has invested an undisclosed amount in Royal Orchid Group of Hotels after joining the group's board of directors, report agencies.His investment comes within days after venture capital fund WestBridge Capital Partners picked up nearly 10% equity stake in the Group for Rs 25 crore (Rs 250 million).The Group recently said that it was seeking to float an IPO to raise Rs 100 crore (Rs 1 billion) to fuel its expansion plans and had filed a red herring prospectus with Sebi soon.

Sebi nod for Bombay Rayon Fashions IPO


Readymade garment manufacturer Bombay Rayon Fashions, BRFL, has received the approval from Securities and Exchange Board of India, Sebi, for its initial public offer, IPO, of 1.34 crore shares of Rs 10 each on book-building basis, report agencies.The company plans to raise these funds for integrated facilities of yarn dying, weaving, process house and garment manufacturing to be started at Apparel Park near Banglore, a company release said on Monday. UTI Bank and Anand Rathi Securities are the lead managers for the issue. Intime Registry Spectrum Registry is the registrar of the issue.

Bannari Amman Spg IPO subscribed 6.90 times


Bannari Amman Spinning Mills IPO closed yesterday. The issue has been subscribed 6.90 times, as per the NSE website. The QIBs portion has been subscribed 4.28 times. The non-institutional investors portion has been subscribed 8.04 times. The retail individual investors portion has been subscribed 10.15 times.The company entered the capital market on October 19, with a public issue of 70 lakh equity shares of the face value of Rs 10 each through the 100% book building process. Its price band was fixed at Rs 115-135. The issue constituted 44.44% of the post issue paid up capital of the company. The capital was being raised to part finance the company's expansion plan.The book running lead managers to the issue were IL&FS Investsmart and ICICI Securities and the registrar was Intime Spectrum Registry. The equity shares of the company will be listed on the BSE and NSE.

Tuesday, October 25, 2005

aurionPro Solutions closes at Rs 106.75 on BSE


aurionPro Solutions listed today on the stock exchanges. It closed at Rs 106.75, with volumes of 65,96,844 shares on the BSE. It touched an intraday high of Rs 134.40 and an intraday low of Rs 98. On the NSE, it closed at Rs 105.65, with volumes of 1,22,63,371 shares.
The stock opened at Rs 102.20 on the BSE and at Rs 102 on the NSE. The stock was issued at Rs 90. The company’s IPO of 30 lakh shares opened on September 27. Its price band was fixed at Rs 81-90. The issue was oversubscribed 13.53 times.
Centrum Capital and Karvy Investor Services were the book running lead managers for the IPO.

Bannari Amman Spg IPO closes today, subscribed 3.04 times


Bannari Amman Spinning Mills IPO closes today. The issue has been subscribed 3.04 times till 11 am, as per the NSE website. The QIBs portion has been subscribed 5.27 times.
The company entered the capital market on October 19, with a public issue of 70 lakh equity shares of the face value of Rs 10 each through the 100% book building process. Its price band has been fixed at Rs 115-135.
The issue would constitute 44.44% of the post issue paid up capital of the company. The capital is being raised to part finance the company's expansion plan.
The book running lead managers to the issue are IL&FS Investsmart and ICICI Securities and the registrar is Intime Spectrum Registry.
The equity shares of the company will be listed on the BSE and NSE.

aurionPro Solutions lists on BSE & NSE


aurionPro Solutions has listed on the stock exchanges. It opened at Rs 102.20 on the BSE and at Rs 102 on the NSE. The stock was issued at Rs 90. Its BSE ID is 532668 and NSE ID is AURIONPRO. At 10:05 am on the BSE, it is quoting at Rs 122.25. It is trading with volumes of 8,80,975 shares. It has touched an intraday high of Rs 126.50 and an intraday low of Rs 98. On the NSE, it is quoting at Rs 127.35, with volumes of 16,28,294 shares.
The company’s IPO of 30 lakh shares opened on September 27. Its price band was fixed at Rs 81-90. The issue was oversubscribed 13.53 times. Centrum Capital and Karvy Investor Services were the book running lead managers for the IPO.

Gujarat Fluorochemicals proposes IPO of Inox Leisure


Gujarat Fluorochemicals has informed BSE today that Inox Leisure, subsidiary of the company is considering initial public offer, IPO, of equity shares of Rs 10 each through book building process for cash.
Today, Gujarat Fluorochemicals closed at Rs 371.65, up Rs 11.65, or 3.24%, with volumes of 25,833 shares on the BSE. It touched an intraday high of Rs 375 and an intraday low of Rs 360.

GIPCL fixes issue price for its public issue


Gujarat Industries Power Company, GIPCL, has fixed the issue price for its public issue of the face value of Rs 10 each at Rs 68 per equity shares. At the price of Rs 68 per share the total issue size is Rs 275 crore (Rs 2.75 billion).
The issue closed on October 19. It was subscribed 4.77 times. The equity shares from this proceeds are proposed to list on the BSE, NSE and VSE.
The company entered the capital market on October 13. Its price band was fixed at Rs 63-75.
The book running lead managers to the issue were Allianz Securities, Enam Financial Consultants, GSFS Capital and Securities and HSBC Securities and Capital Markets (India). Karvy Computershare was the registrar to the issue.

Saturday, October 22, 2005

Gujarat Petronet to launch IPO next month of 13.8cr shares


Gujarat State Petronet yesterday filed prospectus for an initial public offer, IPO, of 13.8 crore equity shares next month, report agencies.
"We filed prospectus with Sebi today," an official said from Ahmedabad.
Of the 13.8 crores equity shares of Rs 10 each, 50% has been reserved for qualified institutional bidders, while 35% would be for retail investors. The remaining15% would be for non-institutional buyers.
Of the reservation for QIBs, 5% has been set aside for mutual funds.
“The premium for the issue would be decided through a book-building process and the IPO would open next month," the official added.

Thursday, October 20, 2005

Bannari Amman Spg Mills subscribed 1.95 times


Bannari Amman Spinning Mills IPO opened on October 19 for subscription. The issue has been subscribed 1.95 times till 1 pm, as per the NSE website. The QIBs portion has been subscribed 3.38 times.
The company entered the capital market with a public issue of 70 lakh equity shares of the face value of Rs 10 each through the 100% book building process. Its price band has been fixed at Rs 115-135. The issue closes on October 25, 2005.
The issue would constitute 44.44% of the post issue paid up capital of the company. The capital is being raised to part finance the company's expansion plan.
The book running lead managers to the issue are IL&FS Investsmart and ICICI Securities and the registrar is Intime Spectrum Registry.
The equity shares of the company will be listed on the BSE and NSE.
    

GIPCL public issue subscribed 4.77 times


The Gujarat Industries Power Company, GIPCL’s public issue closed yesterday. The issue has been subscribed 4.77 times, as per the NSE website. The QIBs portion has been subscribed 7.64 times.
The non-institutional investors portion has been subscribed 2.23 times. The retail investors portion has been subscribed 1.91 times.
The company entered the capital market on October 13 by issuing equity shares worth Rs 275 crore (Rs 2.75 billion). Its price band was fixed at Rs 63-75.
The book running lead managers to the issue were Allianz Securities, Enam Financial Consultants, GSFS Capital and Securities and HSBC Securities and Capital Markets (India). Karvy Computershare was the registrar to the issue.
The equity shares from this proceeds are proposed to list on the BSE, NSE and VSE.

Alps Industries closes below its issue price


Alps Industries closed below its issue price of Rs 120 on the BSE and NSE. The stock closed at Rs 105.60, with volumes of 96,392 shares on the BSE. It touched an intraday high of Rs 120 and an intraday low of Rs 103.
It closed at Rs 104.65, with volumes of 2,03,818 shares on the NSE. There were pending buy orders of 52 shares, with no sellers available. It touched an intraday high of Rs 114 and an intraday low of Rs 103.40.
Its follow on public offer shares listed today on the BSE and NSE. The stock opened at Rs 111 on the BSE and at Rs 111.90 on the NSE.
The company's second public issue opened on September 20, with 41.50 lakh equity shares of Rs 10 each issued at a price of Rs 120 per share for cash aggregating Rs 4,980 lakh.

Wednesday, October 19, 2005

Suzlon Energy debuted at Rs 640 on BSE, attracting a 25.4% premium over the IPO price of Rs 510.


At the current Rs 640, the stock discounts its FY 2005 EPS of Rs 13.40 (based on consolidated financials), by a PE multiple of a huge 47.7. Suzlon’s post issue equity Rs 287.53 crore.
It may be recalled that foreign institutional investors had bid aggressively for the Suzlon IPO.
Suzlon Energy is a leading manufacturer of wind turbine generators (WTG) with a market share of around 44.5% of the total installed capacity in the country. The company, its 100% subsidiaries, and associate companies provide services like wind resource mapping, identification of suitable sites and technical planning of wind power projects and operation and maintenance (O&M) services.
Suzlon Energy will spend nearly Rs 353 crore to set up a plant to manufacture rotor blades and towering facilities in the US, marketing offices in Denmark, and R&D facilities in Germany through its 100% subsidiaries. The company has already completed one international project in the US. It is aiming at international energy growth markets like Australia, Europe, North America, China, Denmark, and New Zealand.