Mumbai: The Bharat Oman Refineries Ltd''s (BORL) initial public offering is likely to hit the market in the second quarter of the coming fiscal. BORL will be mopping Rs 2,400 crore, 50 per cent of which will be raised via a pre-IPO placement. The company filed its DRHP with SEBI on March 28. The public subscription and the private placement are likely to constitute about 48 per cent of the BORL equity. Post the IPO, Oman Oil''s stake in the company is likely to decrease to 5 per cent. BORL is a 50:50 joint venture company of Bharat Petroleum Corporation Ltd and Oman Oil Company Ltd. The company is mopping funds for its Rs 10,400-crore six-million-tonne petroleum refinery at Bina in Madhya Pradesh. The refinery project has debt and equity in the ratio of 1.6:1 and the debt component of Rs 6,400 crore, has already been joined hands
Monday, March 31, 2008
GSPC Postpones IPO Due To Mkt Uncertainties
Kolkata: Gujarat State Petroleum Corporation has decided to float Rs 4,000-6,000 crore IPO before Diwali. The company has also short-listed a few merchant bankers comprising SBI Caps and JM Financial for managing the issue. The GSPC Group flagship was mulling to hit the capital market by mid-2008. The plan was, however, postponed in view of the recent market uncertainties. Financial institutions had suggested the Gujarat State E&P company to review the market condition during mid-2008 and decide accordingly. The public offer may part-finance the proposed development of GSPC''s Deendayal gas field in KG Basin. GSPC are extremely hopeful that the management committee will declare the commerciality of the find shortly.
Saturday, March 29, 2008
Chiripal Plans To Raise Rs 120 Cr Through IPO
Chiripal Industries Ltd (CIL), a city-based textile company, has filed its Drafted Red Herring Prospectus (DRHP) with Securities Exchange Board of India (SEBI) for initial public offer (IPO) to raise close to Rs 120 crore. The amount is about half of the company's total planned capital expenditure of Rs 231 crore in the coming financial year.
CIL intends to issue 14.2 million shares of Rs 10 face value in the price band of Rs 80 to Rs 90 per share. With this IPO, the company will join the league of other listed companies of the Chiripal group - Nova Petrochemical and Nandan Exim Ltd.
"Company expects around Rs 110 to Rs 120 crore through its public issue although the final figure of the offering is not yet decided," said director, Chiripal Industries Ltd, Vishal Chiripal.
Company is in process of finalising its pre-IPO placement, subject to which issue size may be reduced. Out of the issue proceeds, the company will utilise around Rs 53 crore to fund its capital expenditure plan and will invest Rs 6 crore in its subsidiary Chiripal Lifestyle Ltd, to finance the first phase of its 20 retail outlets 'ConneXions'.
CIL will also utilise part of the raised fund to acquire 43% stake in Vraj Integrated Textile Park Ltd - a Rs 111 crore integrated textile park. The remaining funds will be utilised as working capital for the company. According to company officials, capital expenditure of Rs 231 crore will be funded through Rs167 crore term loans, Rs 53 crore issue proceeds and remaining from internal accruals.
The proposed capital expenditure plan includes setting up a new yarn dyeing facilities, fabric dyeing facilities and weaving facilities and expansion of its POY, FDY, textured yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities.
CIL will also invest around Rs 30 crore in setting up 7.5 mw lignite-based power plant to cut down on its power cost.
At present, the company has a processing capacity of 85.80 million meters per annum. For the financial year ending March 2007, CIL registered a turnover of Rs381 crore with net profit of Rs 20 crore. For the six months ending September 2007, for the FY 2008, company's turnover was Rs 224 crore with profit of Rs 14 crore.
CIL intends to issue 14.2 million shares of Rs 10 face value in the price band of Rs 80 to Rs 90 per share. With this IPO, the company will join the league of other listed companies of the Chiripal group - Nova Petrochemical and Nandan Exim Ltd.
"Company expects around Rs 110 to Rs 120 crore through its public issue although the final figure of the offering is not yet decided," said director, Chiripal Industries Ltd, Vishal Chiripal.
Company is in process of finalising its pre-IPO placement, subject to which issue size may be reduced. Out of the issue proceeds, the company will utilise around Rs 53 crore to fund its capital expenditure plan and will invest Rs 6 crore in its subsidiary Chiripal Lifestyle Ltd, to finance the first phase of its 20 retail outlets 'ConneXions'.
CIL will also utilise part of the raised fund to acquire 43% stake in Vraj Integrated Textile Park Ltd - a Rs 111 crore integrated textile park. The remaining funds will be utilised as working capital for the company. According to company officials, capital expenditure of Rs 231 crore will be funded through Rs167 crore term loans, Rs 53 crore issue proceeds and remaining from internal accruals.
The proposed capital expenditure plan includes setting up a new yarn dyeing facilities, fabric dyeing facilities and weaving facilities and expansion of its POY, FDY, textured yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities.
CIL will also invest around Rs 30 crore in setting up 7.5 mw lignite-based power plant to cut down on its power cost.
At present, the company has a processing capacity of 85.80 million meters per annum. For the financial year ending March 2007, CIL registered a turnover of Rs381 crore with net profit of Rs 20 crore. For the six months ending September 2007, for the FY 2008, company's turnover was Rs 224 crore with profit of Rs 14 crore.
IPO Can Wait, But Showbiz Can’t
Is Yash Raj Films planning a joint venture with any of the international film studio banners?
Walt Disney is Yash Raj Films’ co-producer in the animation film Roadside Romeo, which is releasing on Diwali. This is the only international venture we have so far and we finalised it last year.
Any plans to strike an alliance with a foreign partner? As of now, there are no international ventures. It’s true that people are talking to us. But unless something is finalised, I can’t talk about it.
What’s the news on the IPO front? There’s no decision on an IPO yet. The IPO buzz is only a conjecture. This year we have five films, next year we want to raise the figure to 7-8 films. If need be, we may go for an IPO. If not, we won’t.
Are you waiting for the markets to recover in a big way? A couple of months ago, the markets were all right. Yet, we did not go for an IPO. It’s important for us to make up our own minds on whether to go for an IPO or not. At this point, we have not made up our minds to go for an IPO.
Is there any other fund-raising route that you are looking at? There were talks about private-equity firm Blackstone striking a joint venture with the Yash Raj group. Isn’t it?
The Blackstone buzz was mainly because people saw me with Akhil Gupta, the India head of Blackstone. It was not about business. I’ve known him very well for many years.
Walt Disney is Yash Raj Films’ co-producer in the animation film Roadside Romeo, which is releasing on Diwali. This is the only international venture we have so far and we finalised it last year.
Any plans to strike an alliance with a foreign partner? As of now, there are no international ventures. It’s true that people are talking to us. But unless something is finalised, I can’t talk about it.
What’s the news on the IPO front? There’s no decision on an IPO yet. The IPO buzz is only a conjecture. This year we have five films, next year we want to raise the figure to 7-8 films. If need be, we may go for an IPO. If not, we won’t.
Are you waiting for the markets to recover in a big way? A couple of months ago, the markets were all right. Yet, we did not go for an IPO. It’s important for us to make up our own minds on whether to go for an IPO or not. At this point, we have not made up our minds to go for an IPO.
Is there any other fund-raising route that you are looking at? There were talks about private-equity firm Blackstone striking a joint venture with the Yash Raj group. Isn’t it?
The Blackstone buzz was mainly because people saw me with Akhil Gupta, the India head of Blackstone. It was not about business. I’ve known him very well for many years.
Wednesday, March 26, 2008
CARE Assigns 'IPO Grade 3' To PNC Infratech
MUMBAI: CARE has assigned ‘CARE IPO Grade 3’ to the initial public offer of PNC Infratech Ltd, which indicates ‘Average Fundamentals’.
CARE’s IPO grading is an opinion on the fundamentals of the issuer.
PNC Infratech plans to raise Rs 150 crore from around 5.8 million share offering by May. The company focuses on airport infrastructure and on highways, and has worked on airports in Lucknow and Dehradun, and Madurai.
The CARE grading factors experience of PNC Infratech’s promoters, increasing order book position and track record in roads and airport runways for government agencies/ public works departments. The additional factors considered include moderate level of corporate governance and positive outlook for the construction sector. The grading is constrained by the working capital intensive operations, vulnerability to increasing competitive pressure given its relative size and inherent cyclical trends associated with construction sector.
PNC Infratech has presence in various states and has completed around 15 major projects during FY05-07 aggregating Rs 490 crore. Presently, the company has over 18 projects under implementation with order book of around Rs 995 crore as on Sep 30, 2007.
CARE’s IPO grading is an opinion on the fundamentals of the issuer.
PNC Infratech plans to raise Rs 150 crore from around 5.8 million share offering by May. The company focuses on airport infrastructure and on highways, and has worked on airports in Lucknow and Dehradun, and Madurai.
The CARE grading factors experience of PNC Infratech’s promoters, increasing order book position and track record in roads and airport runways for government agencies/ public works departments. The additional factors considered include moderate level of corporate governance and positive outlook for the construction sector. The grading is constrained by the working capital intensive operations, vulnerability to increasing competitive pressure given its relative size and inherent cyclical trends associated with construction sector.
PNC Infratech has presence in various states and has completed around 15 major projects during FY05-07 aggregating Rs 490 crore. Presently, the company has over 18 projects under implementation with order book of around Rs 995 crore as on Sep 30, 2007.
Chiripal Industries files for IPO with SEBI
MUMBAI: Chiripal Industries Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India for an initial public offering of 14,216,700 equity shares of Rs 10 each, at a price to be decided through 100 per cent book-building process.
The issue comprises of a net issue to public of 12,100,000 shares of Rs 10 each, promoters' contribution of 1,916,700 shares of Rs 10 each and a reservation of up to 200,000 shares of Rs 10 each for employees. The net issue will constitute 34.57 per cent of the post issue paid up capital.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange.
The company is also considering a pre-IPO placement. If the placement is completed, the net issue to the public would be reduced to the extent of the share placement.
The company has appointed IDBI Capital Market Services as a book running lead manager.
Chiripal Industries, the flagship of Ahmedabad based Chiripal Group, has presence in the textile chain right from manufacturing yarn to readymade garments. Chiripal Industries operates in man-made fiber segment, specially in the polyester based products. The consolidated turnover of the company was Rs. 490.45 crore for the Fiscal 2007.
The manufacturing units of Chiripal Industries are located at Piplej in Ahmedabad.
To consolidate its operations, the company plans a capacity expansion program at a total cost of Rs 231.33 crore. The expansion includes that of its POY, FDY, texturised yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. The company would also be setting up a new yarn dyeing facility, fabric dyeing and weaving facilities. A new 7.50 MW lignite based power plant would also be installed to cut down on its power cost.
Out of the total issue proceeds, Rs. 53.33 crore would be used to finance the expansion. The company would also avail term loans to the tune of Rs. 167 crore.
Chiripal Industries would be investing Rs 6 crore out of the issue proceeds in its subsidiary, Chiripal Lifestyle, to finance the first phase of 20 outlets.
Chiripal Industries would also be acquiring 43 per cent stake in Vraj Integrated Textile Park, an SPV incorporated by a group of entrepreneurs led by Chiripal Group for setting up an integrated textile park near Ahmedabad.
The issue comprises of a net issue to public of 12,100,000 shares of Rs 10 each, promoters' contribution of 1,916,700 shares of Rs 10 each and a reservation of up to 200,000 shares of Rs 10 each for employees. The net issue will constitute 34.57 per cent of the post issue paid up capital.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange.
The company is also considering a pre-IPO placement. If the placement is completed, the net issue to the public would be reduced to the extent of the share placement.
The company has appointed IDBI Capital Market Services as a book running lead manager.
Chiripal Industries, the flagship of Ahmedabad based Chiripal Group, has presence in the textile chain right from manufacturing yarn to readymade garments. Chiripal Industries operates in man-made fiber segment, specially in the polyester based products. The consolidated turnover of the company was Rs. 490.45 crore for the Fiscal 2007.
The manufacturing units of Chiripal Industries are located at Piplej in Ahmedabad.
To consolidate its operations, the company plans a capacity expansion program at a total cost of Rs 231.33 crore. The expansion includes that of its POY, FDY, texturised yarn facilities, warp knitting facilities, embroidery facilities, processing facilities and readymade garments facilities. The company would also be setting up a new yarn dyeing facility, fabric dyeing and weaving facilities. A new 7.50 MW lignite based power plant would also be installed to cut down on its power cost.
Out of the total issue proceeds, Rs. 53.33 crore would be used to finance the expansion. The company would also avail term loans to the tune of Rs. 167 crore.
Chiripal Industries would be investing Rs 6 crore out of the issue proceeds in its subsidiary, Chiripal Lifestyle, to finance the first phase of 20 outlets.
Chiripal Industries would also be acquiring 43 per cent stake in Vraj Integrated Textile Park, an SPV incorporated by a group of entrepreneurs led by Chiripal Group for setting up an integrated textile park near Ahmedabad.
Tuesday, March 25, 2008
Monday, March 24, 2008
Friday, March 21, 2008
Moser Baer Unit Seeks $150 M Nasdaq IPO
Hong Kong/Mumbai: A unit of Indian compact disc maker Moser Baer India Ltd is seeking to raise about $150 million by listing on the Nasdaq exchange, two sources familiar with the plan said on Thursday.
Morgan Stanley is among the underwriters appointed by Moser Baer Photo Voltaic, which manufactures solar cells and modules, for its U.S. initial public offering (IPO), the two sources said.
The company has started the process and been working on the deal for a few months, but may choose to wait given volatile market conditions, added one source who had been briefed on the plan but was not authorised to speak to the media.
A second source, who is familiar with the company's plans, said an IPO may be a few months away.
Moser Baer Photo said in November it was seeking to invest $150 million on expansion projects and was looking at an overseas listing, though it had not provided details regarding the IPO.
"We are looking at all options to unlock value, but nothing has been finalised as of now. We can't comment on any speculation," said Moser Baer spokesman Deep Ghatak.
Morgan Stanley declined to comment.
Morgan Stanley is among the underwriters appointed by Moser Baer Photo Voltaic, which manufactures solar cells and modules, for its U.S. initial public offering (IPO), the two sources said.
The company has started the process and been working on the deal for a few months, but may choose to wait given volatile market conditions, added one source who had been briefed on the plan but was not authorised to speak to the media.
A second source, who is familiar with the company's plans, said an IPO may be a few months away.
Moser Baer Photo said in November it was seeking to invest $150 million on expansion projects and was looking at an overseas listing, though it had not provided details regarding the IPO.
"We are looking at all options to unlock value, but nothing has been finalised as of now. We can't comment on any speculation," said Moser Baer spokesman Deep Ghatak.
Morgan Stanley declined to comment.
Thursday, March 20, 2008
Crisil ''4/5'' Rating To UTI AMC IPO
Crisil has assigned an IPO Grade "4/5" to the proposed initial public offer of UTI asset Management Company. This grade indicates that the fundamentals of the issue are above average relative to other listed equity securities in India. This grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.
The grading reflects UTI AMC`s position as one of the leading players in the mutual funds industry. UTI AMC has a high proportion of retail and equity assets under management (AUM) when compared with other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps the company better manage the churn of assets while higher proportion of equity provides higher recurring management fees when compared with debt funds.
The grading reflects Crisil''s expectation that the management will be able to harness these strengths to mobilise assets and register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI).
The grading reflects UTI AMC`s position as one of the leading players in the mutual funds industry. UTI AMC has a high proportion of retail and equity assets under management (AUM) when compared with other players by virtue of its strong retail distribution channel and brand recognition. The retail base helps the company better manage the churn of assets while higher proportion of equity provides higher recurring management fees when compared with debt funds.
The grading reflects Crisil''s expectation that the management will be able to harness these strengths to mobilise assets and register growth to substitute the expected decline in income from the Specified Undertaking of Unit Trust of India (SUUTI).
Wednesday, March 19, 2008
No Decision Yet On Date For Air India IPO
New Delhi: India has not yet decided when it will launch an initial public offering in state-run Air India, and will fix a date based on the financial performance of the carrier, a government official said on Tuesday.
The government had earlier said it would sell up to 15 per cent of Air India and use the funds for expansion.
"No decision has been taken yet," Civil Aviation Secretary Ashok Chawla told reporters on the sidelines of an industry conference.
"We will have to take a view on when to consider having the IPO based on the performance (of Air India), which will require the approval of the cabinet," he said.
Chawla declined to say how much the government expects to raise from the offering.
In August, Air India merged with state-run Indian Airlines to form the National Aviation Company of India Ltd. The combined fleet of 112 planes fly on the Air India brand and has on order another 111 Boeing and Airbus planes.
The stand-alone Air India posted a loss of Rs 448 crore ($110 million) in 2006/07, according to a statement made by Civil Aviation Minister Praful Patel in Parliament on March 3.
Indian Airlines figures for the same period were not available, but in November the Minister told Parliament that the airline had posted profits for the three preceding years.
The government had earlier said it would sell up to 15 per cent of Air India and use the funds for expansion.
"No decision has been taken yet," Civil Aviation Secretary Ashok Chawla told reporters on the sidelines of an industry conference.
"We will have to take a view on when to consider having the IPO based on the performance (of Air India), which will require the approval of the cabinet," he said.
Chawla declined to say how much the government expects to raise from the offering.
In August, Air India merged with state-run Indian Airlines to form the National Aviation Company of India Ltd. The combined fleet of 112 planes fly on the Air India brand and has on order another 111 Boeing and Airbus planes.
The stand-alone Air India posted a loss of Rs 448 crore ($110 million) in 2006/07, according to a statement made by Civil Aviation Minister Praful Patel in Parliament on March 3.
Indian Airlines figures for the same period were not available, but in November the Minister told Parliament that the airline had posted profits for the three preceding years.
Air India IPO Only After Performance Review
New Delhi: The initial public offering (IPO) of the national carrier Air India would be floated only after a performance evaluation, Civil Aviation Secretary Ashok Chawla said Tuesday
"We would initially look at the performance of Air India before coming up with an IPO. It will come up at an appropriate time," said Chawla here.
According to him, the public issue would come only after the merger of the government-owned airlines, Air India and Indian Airlines, was complete. The merger is expected to be complete by March 2009.
The government is also sceptical about the volatility of the stock market.
Chawla said the government was not rethinking or deferring the IPO. "There is no question of deferring the IPO at this moment," he pointed out.
The merger of the two airlines was initiated in July 2007. The government indicated a time frame of one to one-and-a-half year for completing the process.
"We would initially look at the performance of Air India before coming up with an IPO. It will come up at an appropriate time," said Chawla here.
According to him, the public issue would come only after the merger of the government-owned airlines, Air India and Indian Airlines, was complete. The merger is expected to be complete by March 2009.
The government is also sceptical about the volatility of the stock market.
Chawla said the government was not rethinking or deferring the IPO. "There is no question of deferring the IPO at this moment," he pointed out.
The merger of the two airlines was initiated in July 2007. The government indicated a time frame of one to one-and-a-half year for completing the process.
The Most Lucrative IPO In US History
San Francisco: The credit crisis that has been haunting the stock market for months wasn't enough to scare investors away from the IPO of the world's largest credit card processor.
Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc sold 406 million shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in US history.
The price topped the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that's promising earnings growth of 20 per cent despite a credit crunch that's choking the US economy.
"This shows that all the recent financial turmoil obviously hasn't bothered a lot of people," said Nicholas Einhorn, an IPO analyst for Renaissance Capital of Greenwich.
Investment bankers could still exercise an option to buy another 40.6 million Visa shares during the next 30 days. If that happens, Visa's IPO will end up raising $19.7 billion before expenses.
Visa faces another litmus test Wednesday when its shares are scheduled to begin trading on the New York Stock Exchagnge under the "V" ticker symbol. The San Francisco-based company will make its debut with a market value of about $36 billion.
Based on the strong demand among money managers who wanted a piece of the IPO, Einhorn anticipates Visa shares will quickly soar above $50.
Visa has been touting its stock as a safe haven -- a message that apparently resonated with investors.
"In times like this, you generally see a flight to quality," said Joel Greenberg, a New York attorney who has advised on other IPOs.
Unlike credit card lenders, Visa doesn't carry any consumer debt on its books. The company makes its money from processing fees, which have been steadily rising for years, including the past two US recessions in 1991 and 2001.
Since the last recession, Visa also has been able to entice consumers to use its credit and debit cards more frequently to pay for staples like groceries, gas and even utility bills. Visa estimates about 42 per cent of its transactions fall into this "nondiscretionary" category, up from 27 per cent in 2000.
Visa conceivably could benefit from tougher times if more cash-strapped consumers rely on their credit cards to make ends meet, said Aite Group analyst Gwenn Bezard. "And even if people can't pay back the debt, Visa still makes money. It's a very attractive company."
The IPO should help bolster the wobbly financial services industry as banks write off billions of dollars in loans that have soured amid the worst housing slump since the 1930s.
More than $10 billion of the IPO proceeds are being used to buy back some of the shares owned by the banks that have helped build Visa during the past 50 years.
JPMorgan Chase & Co, Visa's biggest customer and shareholder, is in line for the biggest payoff from Tuesday's IPO -- about $1.25 billion, based on figures provided in Securities and Exchange Commission documents.
That's five times more than New York-based JPMorgan has agreed to pay in a proposed takeover of investment bank Bear Stearns Co, a major casualty of the credit crisis.
Other big winners in Visa's IPO include: Bank of America Corp, expected to receive roughly $625 million; National City Corp, about $435 million; Citigroup Inc, about $300 million; and US Bancorp and Wells Fargo & Co, both getting more than $270 million.
All the banks will remain major Visa shareholders.
The IPO also is expected to generate more than $500 million in fees for Visa's team of investment bankers, led by JPMorgan and Goldman Sachs & Co.
Besides paying banks, Visa is depositing $3 billion in an escrow account to insulate its shareholders from lawsuits alleging the company profited by stifling competition.
Those legal headaches are one of the chief reasons that Visa decided to go public and pose the biggest investment risk in the IPO, Bezard said.
The IPO gives investors a chance to profit from the rise of electronic payments as more people eschew cash. The trend is expected to accelerate in the years ahead as an entire generation weaned online grow up to enter the job market and begin buying more merchandise and services on the Web, where electronic payments are standard.
Visa already dwarfs its closest competitor, MasterCard Inc, whose stock has more than quintupled since that company went public less than two years ago.
But analysts say Visa priced its IPO more aggressively than MasterCard, making it less likely that its stock will appreciate as dramatically in the months ahead.
Visa processed 44 billion transactions totaling $3.2 trillion in 2006, according to the Nilson Report, an industry newsletter. MasterCard handled 23.4 billion transactions totaling $1.9 trillion in the same year.
Hurt by legal expenses, Visa suffered an $861 million loss on revenue of $5.2 billion in its last fiscal year ended Sept. 30. Visa bounced back in its fiscal first quarter with a $424 million profit, a 70 per cent increase from the previous year.
Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc sold 406 million shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in US history.
The price topped the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that's promising earnings growth of 20 per cent despite a credit crunch that's choking the US economy.
"This shows that all the recent financial turmoil obviously hasn't bothered a lot of people," said Nicholas Einhorn, an IPO analyst for Renaissance Capital of Greenwich.
Investment bankers could still exercise an option to buy another 40.6 million Visa shares during the next 30 days. If that happens, Visa's IPO will end up raising $19.7 billion before expenses.
Visa faces another litmus test Wednesday when its shares are scheduled to begin trading on the New York Stock Exchagnge under the "V" ticker symbol. The San Francisco-based company will make its debut with a market value of about $36 billion.
Based on the strong demand among money managers who wanted a piece of the IPO, Einhorn anticipates Visa shares will quickly soar above $50.
Visa has been touting its stock as a safe haven -- a message that apparently resonated with investors.
"In times like this, you generally see a flight to quality," said Joel Greenberg, a New York attorney who has advised on other IPOs.
Unlike credit card lenders, Visa doesn't carry any consumer debt on its books. The company makes its money from processing fees, which have been steadily rising for years, including the past two US recessions in 1991 and 2001.
Since the last recession, Visa also has been able to entice consumers to use its credit and debit cards more frequently to pay for staples like groceries, gas and even utility bills. Visa estimates about 42 per cent of its transactions fall into this "nondiscretionary" category, up from 27 per cent in 2000.
Visa conceivably could benefit from tougher times if more cash-strapped consumers rely on their credit cards to make ends meet, said Aite Group analyst Gwenn Bezard. "And even if people can't pay back the debt, Visa still makes money. It's a very attractive company."
The IPO should help bolster the wobbly financial services industry as banks write off billions of dollars in loans that have soured amid the worst housing slump since the 1930s.
More than $10 billion of the IPO proceeds are being used to buy back some of the shares owned by the banks that have helped build Visa during the past 50 years.
JPMorgan Chase & Co, Visa's biggest customer and shareholder, is in line for the biggest payoff from Tuesday's IPO -- about $1.25 billion, based on figures provided in Securities and Exchange Commission documents.
That's five times more than New York-based JPMorgan has agreed to pay in a proposed takeover of investment bank Bear Stearns Co, a major casualty of the credit crisis.
Other big winners in Visa's IPO include: Bank of America Corp, expected to receive roughly $625 million; National City Corp, about $435 million; Citigroup Inc, about $300 million; and US Bancorp and Wells Fargo & Co, both getting more than $270 million.
All the banks will remain major Visa shareholders.
The IPO also is expected to generate more than $500 million in fees for Visa's team of investment bankers, led by JPMorgan and Goldman Sachs & Co.
Besides paying banks, Visa is depositing $3 billion in an escrow account to insulate its shareholders from lawsuits alleging the company profited by stifling competition.
Those legal headaches are one of the chief reasons that Visa decided to go public and pose the biggest investment risk in the IPO, Bezard said.
The IPO gives investors a chance to profit from the rise of electronic payments as more people eschew cash. The trend is expected to accelerate in the years ahead as an entire generation weaned online grow up to enter the job market and begin buying more merchandise and services on the Web, where electronic payments are standard.
Visa already dwarfs its closest competitor, MasterCard Inc, whose stock has more than quintupled since that company went public less than two years ago.
But analysts say Visa priced its IPO more aggressively than MasterCard, making it less likely that its stock will appreciate as dramatically in the months ahead.
Visa processed 44 billion transactions totaling $3.2 trillion in 2006, according to the Nilson Report, an industry newsletter. MasterCard handled 23.4 billion transactions totaling $1.9 trillion in the same year.
Hurt by legal expenses, Visa suffered an $861 million loss on revenue of $5.2 billion in its last fiscal year ended Sept. 30. Visa bounced back in its fiscal first quarter with a $424 million profit, a 70 per cent increase from the previous year.
Tuesday, March 18, 2008
FIIs Should Pay Full Amount Upfront, If Time Gap In IPO Cut
MUMBAI: Market regulator SEBI on Monday said like retail investors, FIIs should also pay the full amount of IPOs upfront, if its idea of reducing the time gap between the last day of subscription and the listing of the scrip is implemented.
"FIIs have to put up margins, retail investors have to pay 100 per cent. This is related to a time gap between the last day of subscription and the day the securities get listed. If the time is crunched, then there is no reason why everyone cannot pay all upfront," SEBI Chairman C B Bhave said at a Euromoney Conference.
The market regulator said the present process that requires three or four weeks is not acceptable in today's state of modern infrastructure in the country.
"We want to reduce this. In a few months, we will tell the markets what our roadmap is and how we plan to crunch this time lag between the last date of subscription and listing date. We should be able to achieve this in lesser period of time," he said.
On the issue of Participatory Notes, he said 190 FIIs and 470 sub-accounts have registered with SEBI since October end last year when liberal registration policy was announced.
"This is a good progress. We take 15 days to three weeks to register FIIs unless the applications are incomplete (and) where some correspondence is needed," he said.
Bhave said SEBI did not recognise hedge funds and private equity funds as separate categories.
"FIIs have to put up margins, retail investors have to pay 100 per cent. This is related to a time gap between the last day of subscription and the day the securities get listed. If the time is crunched, then there is no reason why everyone cannot pay all upfront," SEBI Chairman C B Bhave said at a Euromoney Conference.
The market regulator said the present process that requires three or four weeks is not acceptable in today's state of modern infrastructure in the country.
"We want to reduce this. In a few months, we will tell the markets what our roadmap is and how we plan to crunch this time lag between the last date of subscription and listing date. We should be able to achieve this in lesser period of time," he said.
On the issue of Participatory Notes, he said 190 FIIs and 470 sub-accounts have registered with SEBI since October end last year when liberal registration policy was announced.
"This is a good progress. We take 15 days to three weeks to register FIIs unless the applications are incomplete (and) where some correspondence is needed," he said.
Bhave said SEBI did not recognise hedge funds and private equity funds as separate categories.
Monday, March 17, 2008
Gammon Infra IPO Shares To Be Issued At Rs 167 Each
MUMBAI: Gammon Infrastructure Projects Ltd has priced its initial public offer at Rs 167 a share, at the lower end of the given price band, a company official said on Monday. At this level, the company, will raise Rs 276 crore from the 16.55-million-share offer.
The company will use the funds for investment in several projects, repaying debt and for acquisitions. Gammon Infra is 82.5 per cent owned by construction firm Gammon India. Its share offer, which closed on March 13, had been subscribed 3.48 times.
Qualified institutional buyers subscribed five times their alloted quota, high net worth individuals 3.5 times, and retail investors one time. A majority of the bids for the book-built offer had been received at the lower end of the Rs 167-200 price band.
"The listing on the stock exchanges is likely in the first week of April," company secretary Sathis Chandran said. IDFC-SSKI Investment Banking and Macquarie Capital Advisers are the book-running lead managers to the issue
The company will use the funds for investment in several projects, repaying debt and for acquisitions. Gammon Infra is 82.5 per cent owned by construction firm Gammon India. Its share offer, which closed on March 13, had been subscribed 3.48 times.
Qualified institutional buyers subscribed five times their alloted quota, high net worth individuals 3.5 times, and retail investors one time. A majority of the bids for the book-built offer had been received at the lower end of the Rs 167-200 price band.
"The listing on the stock exchanges is likely in the first week of April," company secretary Sathis Chandran said. IDFC-SSKI Investment Banking and Macquarie Capital Advisers are the book-running lead managers to the issue
Titagon Wagons Ltd Is Coming Out With IPO On March 24.
Titagarh Wagon, the private sector railway wagon manufacturer is entering the capital market with its IPO of 23,83,768 shares of Rs10 for cash at a price to be determined through 100% book building proess. The price band for the issue has been between Rs540 and Rs610 per share. The issue opens on March 24, 2008 and closes on March 27, 2008. The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.
The issue consists of net issue of 23,68,768 shares and a reservation of upto 15,000 shares for subscription by eligible employees. At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5% of the QIB portion to mutual funds and the rest will be allocated to the QIB bidders.
The company plans to utilize the proceeds for various purposes like modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an EMU manufacturing facility at Uttarpara unit, , setting up an axle machining and wheelset assembly facility at Uttarpara unit, Brand building exercise, constructing a corporate office and a design cum research and development office, general corporate purposes and strategic and acquisition or investments.
Titagarh Wagons manufactures special purpose wagons, shelters and other engineering equipments. The company also manufactures and markets special purpose wagons to suit the varying needs such as Merry Go Round wagons and special wagons for the Indian Defence establishment. The Company has two manufacturing facilities located at Titagarh and Uttarpara in West Bengal.
The issue consists of net issue of 23,68,768 shares and a reservation of upto 15,000 shares for subscription by eligible employees. At least 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5% of the QIB portion to mutual funds and the rest will be allocated to the QIB bidders.
The company plans to utilize the proceeds for various purposes like modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an EMU manufacturing facility at Uttarpara unit, , setting up an axle machining and wheelset assembly facility at Uttarpara unit, Brand building exercise, constructing a corporate office and a design cum research and development office, general corporate purposes and strategic and acquisition or investments.
Titagarh Wagons manufactures special purpose wagons, shelters and other engineering equipments. The company also manufactures and markets special purpose wagons to suit the varying needs such as Merry Go Round wagons and special wagons for the Indian Defence establishment. The Company has two manufacturing facilities located at Titagarh and Uttarpara in West Bengal.
Saturday, March 15, 2008
Titagarh Wagons IPO To Open On March 24
MUMBAI: Private sector railway wagon manufacturer, Titagarh Wagon is entering the capital market with its initial public offering of 23,83,768 shares of Rs 10 for cash at a price to be determined through 100 per cent book building process. The issue opens on March 24 and closes March 27. The price band has been fixed between Rs 540 and Rs 610 per share.
The issue comprises fresh issue of 20,68,111 shares and an offer for sale of 3,15,657 equity shares by Rashmi Chowdhary and Strategic Ventures Fund (Mauritius). The issue consists of a net issue of 23,68,768 shares and a reservation of up to 15,000 shares for subscription by eligible employees. The net issue will constitute 12.8 per cent of the post issue capital of the company.
At least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5 per cent of the QIB portion will be allocated to mutual funds, and the remaining will be allocated to the QIB bidders including mutual funds. Further, not less than 10 per cent of the net issue will be allocated on a proportionate basis to non-institutional bidders and 30 per cent to retail investors.
The company plans to utilise the proceeds for - a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
Titagarh Wagons operates two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal. As an “Industry Partner” to the Defence Research and Development Organisation, Ministry of Defence, the company manufactures special purpose wagons, shelters and other engineering equipments.
The company also manufactures and markets special purpose wagons to suit the varying needs of its customers, such as the Merry-Go-Round wagons, special wagons for the Indian Defence establishment. The company has acquired the heavy engineering division of Hyderabad Industries which includes a manufacturing unit at Uttarpara, West Bengal with a steel foundry, fabrication cum machining facility and access to a rail siding.
The order book of the company stands at Rs 753.11 crore with the rolling stock division constituting nearly Rs 669.39 crore as on January 31, 2008. The company is structured along three broad business lines: a) wagon manufacturing division, b) special projects division (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.
Since fiscal 2003, the company’s total income and profit before tax have grown from Rs 47.17 crore and Rs 4.71 crore respectively to Rs 284.05 crore and Rs 44.80 crore respectively in fiscal 2007, which represents a CAGR of 57 per cent and 76 per cent respectively, during this period. The wagon dispatches of the company have increased from 644 wagons in fiscal 2003 to 2,073 wagons in fiscal 2007.
The stock will be listed on the Bombay Stock Exchange and National Stock Exchange of India.
The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.
The issue comprises fresh issue of 20,68,111 shares and an offer for sale of 3,15,657 equity shares by Rashmi Chowdhary and Strategic Ventures Fund (Mauritius). The issue consists of a net issue of 23,68,768 shares and a reservation of up to 15,000 shares for subscription by eligible employees. The net issue will constitute 12.8 per cent of the post issue capital of the company.
At least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyer, 5 per cent of the QIB portion will be allocated to mutual funds, and the remaining will be allocated to the QIB bidders including mutual funds. Further, not less than 10 per cent of the net issue will be allocated on a proportionate basis to non-institutional bidders and 30 per cent to retail investors.
The company plans to utilise the proceeds for - a) Setting up an EMU manufacturing facility at Uttarpara unit, b) Modernising and expanding the existing facilities at Titagarh and Uttarpara units, c) Setting up an axle machining and wheelset assembly facility at Uttarpara unit, d) Constructing a corporate office and a design cum research and development office, e) Strategic acquisition or investments, f) Brand building exercise and g) General corporate purposes.
Titagarh Wagons operates two manufacturing facilities located at Titagarh and Uttarpara, in West Bengal. As an “Industry Partner” to the Defence Research and Development Organisation, Ministry of Defence, the company manufactures special purpose wagons, shelters and other engineering equipments.
The company also manufactures and markets special purpose wagons to suit the varying needs of its customers, such as the Merry-Go-Round wagons, special wagons for the Indian Defence establishment. The company has acquired the heavy engineering division of Hyderabad Industries which includes a manufacturing unit at Uttarpara, West Bengal with a steel foundry, fabrication cum machining facility and access to a rail siding.
The order book of the company stands at Rs 753.11 crore with the rolling stock division constituting nearly Rs 669.39 crore as on January 31, 2008. The company is structured along three broad business lines: a) wagon manufacturing division, b) special projects division (includes defence, bailey bridges and other fabricated equipment) and c) heavy earth moving and mining equipment division.
Since fiscal 2003, the company’s total income and profit before tax have grown from Rs 47.17 crore and Rs 4.71 crore respectively to Rs 284.05 crore and Rs 44.80 crore respectively in fiscal 2007, which represents a CAGR of 57 per cent and 76 per cent respectively, during this period. The wagon dispatches of the company have increased from 644 wagons in fiscal 2003 to 2,073 wagons in fiscal 2007.
The stock will be listed on the Bombay Stock Exchange and National Stock Exchange of India.
The lead manager to the issue is Kotak Mahindra Capital and the co-book running lead manager is JM Financial Consultants.
Friday, March 14, 2008
Kiri Dyes & Chemicals Ltd Is Entering The Capital Market With Its IPO
Kiri Dyes chemicals Limited, which is one of the leading manufacturer and exporters of dyes is hitting the capital market with its initial public offering of 37.5 lakh equity shares of face value of Rs10 each through 100% book building process. The issue constitutes 25% of fully diluted post issue paid up capital. The price band for the issue has been fixed between Rs125 to Rs150 and the issue will open on March 25 and will close on April 2, 2008. The qualified institutional buyers shall be allocated 50% of the issue. From and out of the QIB portion 5% for mutual funds, 15% to non-institutional bidders and 35% to retail investors. The Book Running Lead Manager to the issue is Centrum Capital.
Kiri Dyes was incorporated on 14th May 1998 as a Kiri Dyes and Chemicals Private Limited at Ahmedabad, Gujarat. It has been promoted by Mr Praveen A. Kiri and Mr. Manish P. Kiri. KDCL is engaged in the business of manufacturing of reactive dyes, which are called, synthetic organic dyes used for cotton fabrics like garments, dress materials, bed-sheets, carpets etc. The dyes are of basically colours like black, blue, red, orange, yellow and numerous variants of these basic colours identified by color index number internationally.
The product range of the company comprises of more than 120 dyestuffs used by textiles, leather, paint and printing ink industries with total production capacity of 10800 MT per annum. KDCL supplies reactive, acid, and direct dyes as well as dye-intermediates in various forms like standardized spray dried/tray dried - powder/granular, crude and reverse osmosis. All the products manufactured by the company have found global acceptance.
Thursday, March 13, 2008
DLF May Delay REIT IPO, Eyes Placement: Source
MUMBAI: Developer DLF Ltd may delay a planned initial public offering in Singapore of a real estate investment trust and instead opt for a private placement to raise about $500 million, a source said on Thursday.
DLF, India's most valuable property firm, had planned to raise $1.5 billion from the Singapore listing, but the company had changed tack because of large falls in global markets since the plan was announced last year.
DLF was now in talks with a clutch of investors and expected to seal a deal by the end of the month, the source said. "The markets are so unpredictable now, we may wait till they stabilise before doing an IPO," said the source, who has knowledge of the deal but did not want to be named.
"We are in touch with five or six investors for a placement, which we will probably finalise by month-end," he said. Potential investors include Citigroup, Merrill Lynch and DE Shaw, he said, confirming media reports on Thursday, with DLF seeking to raise Rs 2000 crore ($500 million) in private placements for the property trust.
DLF also planned to invest $750 million in the trust, owned by a subsidiary, DLF Assets, the paper said, citing unnamed sources. The company that handles DLF's media enquiries declined to comment.
DLF had said in February it was still working on the IPO and expected it to be launched in the second quarter of the year, with regulatory approvals expected within a month. Volatile markets have seen more than $23 billion in global IPO plans postponed or withdrawn, according to Thomson Financial.
India does not yet allow REITs to be floated, but draft guidelines for them were issued in December by the market regulator. ($1=Rs 40.5)
DLF, India's most valuable property firm, had planned to raise $1.5 billion from the Singapore listing, but the company had changed tack because of large falls in global markets since the plan was announced last year.
DLF was now in talks with a clutch of investors and expected to seal a deal by the end of the month, the source said. "The markets are so unpredictable now, we may wait till they stabilise before doing an IPO," said the source, who has knowledge of the deal but did not want to be named.
"We are in touch with five or six investors for a placement, which we will probably finalise by month-end," he said. Potential investors include Citigroup, Merrill Lynch and DE Shaw, he said, confirming media reports on Thursday, with DLF seeking to raise Rs 2000 crore ($500 million) in private placements for the property trust.
DLF also planned to invest $750 million in the trust, owned by a subsidiary, DLF Assets, the paper said, citing unnamed sources. The company that handles DLF's media enquiries declined to comment.
DLF had said in February it was still working on the IPO and expected it to be launched in the second quarter of the year, with regulatory approvals expected within a month. Volatile markets have seen more than $23 billion in global IPO plans postponed or withdrawn, according to Thomson Financial.
India does not yet allow REITs to be floated, but draft guidelines for them were issued in December by the market regulator. ($1=Rs 40.5)
IPO Closing Today
1) Gammon Infrastructure Projects Ltd
Opening Date: 10/03/2008
Closing Date : 13/03/2008
Opening Date: 10/03/2008
Closing Date : 13/03/2008
Wednesday, March 12, 2008
Gammon Infra IPO Subscribed 0.75 Times, Sita Shree Struggles
MUMBAI: The initial public offer of Gammon Infrastructure Projects was subscribed 0.75 times at end of the second day of the issue Tuesday. The issue closes on Thursday.
On the other hand, the IPO of Sita Shree Food Products hardly received any subscription on the first day.
Gammon Infrastructure’s 1,65,50,000 shares (of Rs 10 each) on offer are priced Rs 167-200 per share. The issue comprises 1.49 crore shares to the public and a reservation of 16.55 lakh shares for employees.
Non-institutional investor portion of 14,89,500 shares, or 10 per cent allocated to them, was subscribed 2.73 times. The 60 per cent, or 89,37,000 shares, allocated to qualified institutional buyers, was subscribed 0.92 times.
However, the retail portion was subscribed 0.01 times of the 30 per cent of total offer. The employees’ portion was subscribed 0.02 times.
The company has offered part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date.
Gammon Infra undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis. The company to use funds raised through its forthcoming stock offer to help finance the development of the Rangit II hydropower project.
The IPO of Sita Shree Food Products hardly received any subscription on the first day. The company has set a price band of Rs 27-Rs 30 per share aggregating to Rs 31.50 crore. The issue closes on Friday.
The company plans to utilize the net proceeds to part finance its Rs 48.12-crore expansion. This includes setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd.
The project will be set up at Badiakima, Indore, Madhya Pradesh, just 8 km away from existing location.
On the other hand, the IPO of Sita Shree Food Products hardly received any subscription on the first day.
Gammon Infrastructure’s 1,65,50,000 shares (of Rs 10 each) on offer are priced Rs 167-200 per share. The issue comprises 1.49 crore shares to the public and a reservation of 16.55 lakh shares for employees.
Non-institutional investor portion of 14,89,500 shares, or 10 per cent allocated to them, was subscribed 2.73 times. The 60 per cent, or 89,37,000 shares, allocated to qualified institutional buyers, was subscribed 0.92 times.
However, the retail portion was subscribed 0.01 times of the 30 per cent of total offer. The employees’ portion was subscribed 0.02 times.
The company has offered part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date.
Gammon Infra undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis. The company to use funds raised through its forthcoming stock offer to help finance the development of the Rangit II hydropower project.
The IPO of Sita Shree Food Products hardly received any subscription on the first day. The company has set a price band of Rs 27-Rs 30 per share aggregating to Rs 31.50 crore. The issue closes on Friday.
The company plans to utilize the net proceeds to part finance its Rs 48.12-crore expansion. This includes setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd.
The project will be set up at Badiakima, Indore, Madhya Pradesh, just 8 km away from existing location.
PAN Photocopy Not Necessary With IPO: SEBI
MUMBAI: The Securities and Exchange Board of India on Tuesday sought to clarify that it has not mandated the practice of public issue applicants attaching photocopies of PAN cards with the form.
The markets regulator has written to merchant bankers the present DIP guidelines only require the PAN number to be quoted in the application forms, irrespective of the size of the application.
SEBI has instructed merchant bankers to ensure that all collection agents do not refuse to accept applications in the absence of photocopy of PAN card, a circular said.
The markets regulator has written to merchant bankers the present DIP guidelines only require the PAN number to be quoted in the application forms, irrespective of the size of the application.
SEBI has instructed merchant bankers to ensure that all collection agents do not refuse to accept applications in the absence of photocopy of PAN card, a circular said.
Tuesday, March 11, 2008
CRISIL IPO Grade 1/5 For Sejal Architectural Glass
MUMBAI: CRISIL has assigned a CRISIL IPO Grade "1/5" to the proposed initial public offering of Sejal Architectural Glass Ltd, which indicates that the fundamentals of the issue are poor relative to other listed securities.
However, the grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.
CRISIL's grading reflects the challenges that Sejal Architectural is likely to face as a glass processor in setting up a largely debt-funded float glass project (float glass project cost is about Rs 4.8 billion with debt funding of about Rs 3.2 billion).
The float glass industry, apart from being capital-intensive, is dominated by a few large global players and is characterised by profit cyclicality. Sejal Architectural has done well to become one of the five leading glass-processing companies in India. However, its ability to stabilise and operate a float glass plant, as well as sell about six times its current volume of glass, remains to be seen.
The grading also reflects Sejal Architectural's below-average corporate governance structure.
However, the grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.
CRISIL's grading reflects the challenges that Sejal Architectural is likely to face as a glass processor in setting up a largely debt-funded float glass project (float glass project cost is about Rs 4.8 billion with debt funding of about Rs 3.2 billion).
The float glass industry, apart from being capital-intensive, is dominated by a few large global players and is characterised by profit cyclicality. Sejal Architectural has done well to become one of the five leading glass-processing companies in India. However, its ability to stabilise and operate a float glass plant, as well as sell about six times its current volume of glass, remains to be seen.
The grading also reflects Sejal Architectural's below-average corporate governance structure.
Sita Shree IPO Opens For Subscription
MUMBAI: The initial public offering of Sita Shree Food Products is opened for subscription Tuesday. The issue closes on March 14. The company has set up a price band of Rs 27-Rs 30 per share aggregating to Rs 31.50 crore. The issue has been graded by CARE as "IPO grade 2".The equity shares are proposed to be listed on BSE and NSE.
The company proposes to invest the net proceeds of the issue to part finance its Rs 48.12 crore expansion. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd. The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location.
The company proposes to invest the net proceeds of the issue to part finance its Rs 48.12 crore expansion. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd. The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location.
Monday, March 10, 2008
IPO Opening Today
1) Gammon Infrastructure Projects Ltd
Opening Date: 10/03/2008
Closing Date : 13/03/2008
Opening Date: 10/03/2008
Closing Date : 13/03/2008
Gammon Infrastructure Projects Ltd Hits The Capital Market With Its IPO
Gammon Infrastructure Projects (GIPL), hit the capital market with its initial public offering of 1,65,50,000 equity shares of face value Rs10 for a cash price through 100% book building process. The price band for the issue has been fixed between Rs167 and Rs200 per equity share. The issue opens on 10-03-2008 and will close on 13-03-2008. The issue consists of 1,48,95,000 equity shares to the public and 16,55,000 equity shares reserved for eligible employees. Out of the total issue, 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers and 5% of the QIB will be allocated to mutual funds and the remaining QIB portion will be allocated to the QIB bidders including mutual funds. AT leasr 10% of the net issue will be allocated on a proportionate basis to non-institutional bidders and 30% of the net issue will be allocated to retail investors on a proportionate basis. The company is an infrastructure project development company promoted by Gammon Group, is open for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band has been fixed between Rs 167 and Rs 200 per equity share.
For the investor, there are two modes of payment. As per payment method 1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share . And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. While under the Payment Method-II, amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.
Presently, GIPL's infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.
Sita Shree Food Products Ltd Enters The Capital Market
Sita Shree enters the capital market with an initial public offering of Rs31.50 crore through the book building process on March 11, 2008. The price band of this issue is fixed at Rs27 to Rs30 per share and the issue will close on March 14, 2008.
The company will invest the net proceeds of the issue for part financing its expansion plan of Rs48.12 crore. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd. The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location.
The company's product portfolio includes wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like "Sita Shree", "Regular" and "Sita Shree Gold" or sold to other brands.
Friday, March 7, 2008
CTT May Force A Delay In IPO Of MCX
NEW DELHI: The country's leading commodity exchange MCX may consider delaying its Initial Public Offer because of introduction of Commodities Transaction Tax (CTT), which is likely to affect the turnover of the bourse.
"It will require a deliberation in the company," a source said commenting on whether MCX would shelve or delay the plan to launch IPO due to negative sentiments created by the introduction of CTT in commodity market.
The introduction of CTT would affect the business of the commodity market, source added. The turnover of MCX, which has a stronghold in bullion, metal and energy commodities, was Rs 27,29,822 crore during April-December 2007.
MCX had last month filed a draft prospectus with the market regulator SEBI for its IPO, through which the company plans to raise about Rs 500 crore from sale of one crore equity shares.
NYSE Euronext, which owns the New York Stock Exchange and four European bourses, had picked up five per cent stake in MCX for USD 55 million last month. The deal had valued MCX at about $1.1 billion (over Rs 4,300 crore).
According to DRHP, the public issue of one crore equity shares of Rs five each at a premium to be determined through a 100 per cent book-building process would comprise fresh issue of 60 lakh shares. Another 40 lakh shares will be sold by Financial Technologies (India) Ltd, the main promoter of MCX, and Corporation Bank.
The company had filed a Draft Red Herring Prospectus for its IPO way back in 2006, but the plans were later shelved.
Proceeds of the issue would be used for the exchange's technology infrastructure and strategic investment and acquisitions, besides other usages.
"It will require a deliberation in the company," a source said commenting on whether MCX would shelve or delay the plan to launch IPO due to negative sentiments created by the introduction of CTT in commodity market.
The introduction of CTT would affect the business of the commodity market, source added. The turnover of MCX, which has a stronghold in bullion, metal and energy commodities, was Rs 27,29,822 crore during April-December 2007.
MCX had last month filed a draft prospectus with the market regulator SEBI for its IPO, through which the company plans to raise about Rs 500 crore from sale of one crore equity shares.
NYSE Euronext, which owns the New York Stock Exchange and four European bourses, had picked up five per cent stake in MCX for USD 55 million last month. The deal had valued MCX at about $1.1 billion (over Rs 4,300 crore).
According to DRHP, the public issue of one crore equity shares of Rs five each at a premium to be determined through a 100 per cent book-building process would comprise fresh issue of 60 lakh shares. Another 40 lakh shares will be sold by Financial Technologies (India) Ltd, the main promoter of MCX, and Corporation Bank.
The company had filed a Draft Red Herring Prospectus for its IPO way back in 2006, but the plans were later shelved.
Proceeds of the issue would be used for the exchange's technology infrastructure and strategic investment and acquisitions, besides other usages.
NHPC May Come Up With IPO In July-August
NEW DELHI: Having missed the opportunity last year to hit the market, power sector giant NHPC is likely to approach market regulator SEBI by May for its Initial Public Offer.
"We are waiting for the appointment of independent directors... We hope to have them on the Board soon as the names have already been forwarded and are under process. The government has extended all support," NHPC Chairman and Managing Director S K Garg told media.
"We should be hitting the market around July-August this year and submit revised draft prospectus with SEBI, based on current fiscal's financial performance on March 31," he added.
NHPC, which has a paid up capital of Rs 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10 per cent as fresh equity besides five per cent disinvestment. The shares would be face value of Rs 10 each.
The proceeds from IPO would be used to part finance the Rs 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.
This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.
Asked about the premium the company was expecting, Garg declined to comment, saying it was too early to comment but exuded confidence of investors' faith on the PSUs as it happened in case of Rural Electrification Corporation (REC), whose IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on IPO front.
"We are waiting for the appointment of independent directors... We hope to have them on the Board soon as the names have already been forwarded and are under process. The government has extended all support," NHPC Chairman and Managing Director S K Garg told media.
"We should be hitting the market around July-August this year and submit revised draft prospectus with SEBI, based on current fiscal's financial performance on March 31," he added.
NHPC, which has a paid up capital of Rs 11,500 crore, is likely to come out with a public offer of 167 crore shares, which would add 10 per cent as fresh equity besides five per cent disinvestment. The shares would be face value of Rs 10 each.
The proceeds from IPO would be used to part finance the Rs 28,000 crore expansion plan of NHPC, which has set an ambitious target of becoming a 10,000 MW power generation company during the 11th plan period.
This will be the biggest IPO in the power sector with 167 crore shares on sale, officials said.
Asked about the premium the company was expecting, Garg declined to comment, saying it was too early to comment but exuded confidence of investors' faith on the PSUs as it happened in case of Rural Electrification Corporation (REC), whose IPO was over subscribed by more than 30 times despite uncertainty in the stock market, especially on IPO front.
Tuesday, March 4, 2008
Sita Shree Food Products IPO Opens On March 11; Priced Rs 27-30/Share
MUMBAI: Sita Shree Food Products will enter the capital markets on March 11 with a public issue aggregating Rs 31.50 crore through the book building process. The price band has been fixed at Rs 27 to Rs 30 per share and the issue closes on March 14.
The issue has been graded by CARE as "IPO grade 2".The equity shares are proposed to be listed on BSE and NSE.
The company proposes to invest the net proceeds of the issue to part finance its Rs 48.12 crore expansion. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd.
The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location. The company has received sanction from Union Bank of India for term loan of Rs 10 crore. The promoters have already brought in their contribution of Rs 6.24 crore.
Sita Shree's existing plant is located at Indore on 2.5 acres of land. Its product portfolio consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like "Sita Shree", "Regular" and "Sita Shree Gold" or sold to other brands. Its turnover is dominated by bulk packing products segment.
The company achieved a turnover of Rs 80.74 crore and profit after tax of Rs 92.92 lakh for the year ended March 31, 2007. For the first seven months of the current fiscal ended on Oct 31, 2007 the turnover was Rs 50.17 crore and PAT Rs 59.17 lakh.
The issue has been graded by CARE as "IPO grade 2".The equity shares are proposed to be listed on BSE and NSE.
The company proposes to invest the net proceeds of the issue to part finance its Rs 48.12 crore expansion. The plan include setting up of a solvent extraction plant having 500 tonne per day capacity, a oil refinery for solvent extraction plant having 100 tpd capacity, a lecithin plant for processing the by products of solvent extraction plant having 5 tpd capacity, and a flour mill of 275 tpd.
The proposed project will be set up at Badiakima, Indore, Madhya Pradesh just 8 km away from existing location. The company has received sanction from Union Bank of India for term loan of Rs 10 crore. The promoters have already brought in their contribution of Rs 6.24 crore.
Sita Shree's existing plant is located at Indore on 2.5 acres of land. Its product portfolio consists of wheat flour, maida, rawa, daliya, suji, chana dal etc. These products are marketed under its own brand like "Sita Shree", "Regular" and "Sita Shree Gold" or sold to other brands. Its turnover is dominated by bulk packing products segment.
The company achieved a turnover of Rs 80.74 crore and profit after tax of Rs 92.92 lakh for the year ended March 31, 2007. For the first seven months of the current fiscal ended on Oct 31, 2007 the turnover was Rs 50.17 crore and PAT Rs 59.17 lakh.
IPO Shelved, Wockhardt Now Turns To Pes For Funds
BANGALORE/MUMBAI: After shelving its IPO plan, Wockhardt Hospitals has turned to private equity (PE) majors for raising up to $150 million.
Sources said the company has held early-stage talks with several funds, with the names of AIG, 3i, Actis and Carlyle doing the rounds.
It is reliably learnt that Wockhardt is seeking a valuation closer to the lower price band of the dropped IPO, which is around Rs 225 per share. But the funds are expected to drive a hard bargain with some of them already indicating a discount pricing in the initial discussions, sources added.
Depending on the valuation, the hospital chain plans to raise anywhere between $100 and $150 million through placement, sources added.
Alternatively, the company is also exploring the option of debt while hoping to resurrect the IPO later. The promoters may not like to dilute twice, that too if the valuation is not matching their expectations, said a banking source.
When contacted, Wockhardt Hospitals chairman Habil Khorakiwala said: We are looking at raising funds through several routes, with PE being one of the options. While some of the funds confirmed looking at the proposal, others like 3i said it was not in talks.
It is learnt that the company may be holding talks with four to five funds currently. Wockhardt was planning to raise between Rs 688 crore and Rs 762 crore through IPO within a price band of Rs 280-310 per share, but lowered the price band to Rs 225-260 on the eve of the public offering.
It intended offering over 2.5 crore shares of Rs 10 face value representing 24% of the post-issue equity capital before the IPO fell through in volatile market conditions.
The company is looking at raising funds for hospital network expansion through both greenfield and brownfield projects, including a possible foray into medial tourism. The private equity industry has been actively scouting for investment opportunities in the healthcare service space.
Funds like AIG, JP Morgan and Actis have already cut deals in the healthcare services space, while 3i has significant presence in the UK healthcare market awash with private equity action.
Wockhardt currently operates 15 specialty hospitals with about 1,400 beds nationally.
Sources said the company has held early-stage talks with several funds, with the names of AIG, 3i, Actis and Carlyle doing the rounds.
It is reliably learnt that Wockhardt is seeking a valuation closer to the lower price band of the dropped IPO, which is around Rs 225 per share. But the funds are expected to drive a hard bargain with some of them already indicating a discount pricing in the initial discussions, sources added.
Depending on the valuation, the hospital chain plans to raise anywhere between $100 and $150 million through placement, sources added.
Alternatively, the company is also exploring the option of debt while hoping to resurrect the IPO later. The promoters may not like to dilute twice, that too if the valuation is not matching their expectations, said a banking source.
When contacted, Wockhardt Hospitals chairman Habil Khorakiwala said: We are looking at raising funds through several routes, with PE being one of the options. While some of the funds confirmed looking at the proposal, others like 3i said it was not in talks.
It is learnt that the company may be holding talks with four to five funds currently. Wockhardt was planning to raise between Rs 688 crore and Rs 762 crore through IPO within a price band of Rs 280-310 per share, but lowered the price band to Rs 225-260 on the eve of the public offering.
It intended offering over 2.5 crore shares of Rs 10 face value representing 24% of the post-issue equity capital before the IPO fell through in volatile market conditions.
The company is looking at raising funds for hospital network expansion through both greenfield and brownfield projects, including a possible foray into medial tourism. The private equity industry has been actively scouting for investment opportunities in the healthcare service space.
Funds like AIG, JP Morgan and Actis have already cut deals in the healthcare services space, while 3i has significant presence in the UK healthcare market awash with private equity action.
Wockhardt currently operates 15 specialty hospitals with about 1,400 beds nationally.
Gammon Infra IPO To Hit St On March 10
MUMBAI: A volatile market and bearish investor sentiment notwithstanding, infrastructure firm Gammon Infrastructure Projects (GIPL), a Gammon group company, on Monday announced its decision to raise Rs 300 crore via an IPO. “Given that the infrastructure growth in India is still in its infancy, we have a long way to go,” GIPL managing director Parvez Umrigar told ET.
The company is offering 16.55 crore equity shares at a par value of Rs 10 each for cash, which will be determined through a 100% book-building process. The issue will open for subscription between March 10 and March 13. The price band has been fixed between Rs 167 and Rs 200 per equity share.
The company is also offering part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date. The recent trend in the primary market clearly leaves a question mark on the success of the issue.
At the upper band, the company is asking a price-earnings (P/E) multiple of over 100 based on company’s FY08 estimated earnings. This is almost three times the current valuation enjoyed by its peers such as L&T and IVRCL Infrastructure.
GIPL undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis.
The company is offering 16.55 crore equity shares at a par value of Rs 10 each for cash, which will be determined through a 100% book-building process. The issue will open for subscription between March 10 and March 13. The price band has been fixed between Rs 167 and Rs 200 per equity share.
The company is also offering part-payment facility to retail investors and non-institutional investors. The amount payable on submission of the bid-cum-application form is Rs 50 per equity share, with the balance to be paid by the due date. The recent trend in the primary market clearly leaves a question mark on the success of the issue.
At the upper band, the company is asking a price-earnings (P/E) multiple of over 100 based on company’s FY08 estimated earnings. This is almost three times the current valuation enjoyed by its peers such as L&T and IVRCL Infrastructure.
GIPL undertakes and develops projects like roads, bridges, ports, hydroelectric power projects on PPP basis.
Saturday, March 1, 2008
'Save Tiger' Not On FM's Mind, Only Rs 50 Cr Allocated
New Delhi: Finance Minister P Chidambaram on Friday announced an allocation of Rs 50 crore to the National Tiger Conservation Authority to protect the big cat.
While presenting the national budget for 2008-09 at the Lok Sabha, he expressed concern over the dwindling number of tigers, calling the situation "alarming".
This amount is the Budget for 29 tiger reserves across India, averaging less than Rs 2 crore per tiger reserve.
While numbers allocated may have doubled since last Budget for tigers, environmentalists might feel the allocation still remains abysmally low
While presenting the national budget for 2008-09 at the Lok Sabha, he expressed concern over the dwindling number of tigers, calling the situation "alarming".
This amount is the Budget for 29 tiger reserves across India, averaging less than Rs 2 crore per tiger reserve.
While numbers allocated may have doubled since last Budget for tigers, environmentalists might feel the allocation still remains abysmally low
Mobile Handsets To Become Costlier
New Delhi: Mobile phone users would now have to shell out more money for buying new handsets, with the government proposing to levy one per cent excise duty on them.
In his Budget speech, Finance Minister P Chidambaram said: "Excise duty of one per cent, called National Calamity Contingent Duty, is now imposed on polyester filament yarn, which is the only yarn suffering this excise duty. I propose to remove that duty and shift the levy to cellular mobile phones."
"It will definitely increase the prices of mobile phones," LG Business Group Head (GSM) Anil Arora told PTI when asked about the impact of the proposed move.
The proposal may translate into a corresponding one per cent hike in price of mobile handsets. However, a full impact of this needs to be reviewed, a Nokia spokesperson said.
Echoing similar sentiments, Indian Cellular Association President Pankaj Mohindroo said the proposed move of levying one per cent excise duty would increase the prices of mobile phone sets.
When asked how much the prices would go up, he said, "The price rise will not be killing... it will be minimal."
Global cellular handsets majors Nokia, Samsung, Motorola and LG have their mobile manufacturing plants in India.
In his Budget speech, Finance Minister P Chidambaram said: "Excise duty of one per cent, called National Calamity Contingent Duty, is now imposed on polyester filament yarn, which is the only yarn suffering this excise duty. I propose to remove that duty and shift the levy to cellular mobile phones."
"It will definitely increase the prices of mobile phones," LG Business Group Head (GSM) Anil Arora told PTI when asked about the impact of the proposed move.
The proposal may translate into a corresponding one per cent hike in price of mobile handsets. However, a full impact of this needs to be reviewed, a Nokia spokesperson said.
Echoing similar sentiments, Indian Cellular Association President Pankaj Mohindroo said the proposed move of levying one per cent excise duty would increase the prices of mobile phone sets.
When asked how much the prices would go up, he said, "The price rise will not be killing... it will be minimal."
Global cellular handsets majors Nokia, Samsung, Motorola and LG have their mobile manufacturing plants in India.
Budget: India Inc Ready With Charter Of Expectations
New Delhi: Corporate India is keeping its fingers crossed, hoping for Minimum Alternate Tax (MAT) to be abolished or at least reduced to five per cent.
Here are the major expectations of the various industry sectors:
Textile industry hit by a rising rupee expects the textile up-gradation fund increased to Rs 1,700 crore.
The Information Technology sector hope its tax holiday is extended beyond 2009.
Cement, which had been hit hard in the last Budget, is asking for a cut in Value Added Tax rates to 4 per cent.
The tobacco industry is simply hoping for a tax hike that is not too steep but they fear a new cess will be imposed like in most years.
But will investors gain today? The market isn’t too excited and Budget is expected to be a non event.
According to CNBC-TV18 analysis, no direction is expected from the market when trade opens. The market is expected to be fixed in a range depending on the US market.
Relief is expected in the market after the session.
Here are the major expectations of the various industry sectors:
Textile industry hit by a rising rupee expects the textile up-gradation fund increased to Rs 1,700 crore.
The Information Technology sector hope its tax holiday is extended beyond 2009.
Cement, which had been hit hard in the last Budget, is asking for a cut in Value Added Tax rates to 4 per cent.
The tobacco industry is simply hoping for a tax hike that is not too steep but they fear a new cess will be imposed like in most years.
But will investors gain today? The market isn’t too excited and Budget is expected to be a non event.
According to CNBC-TV18 analysis, no direction is expected from the market when trade opens. The market is expected to be fixed in a range depending on the US market.
Relief is expected in the market after the session.
Chidambaram Showers More Money On Sports
New Delhi: Finance Minister P Chidambaram on Friday allocated Rs 1,111.81 crore as total Sports Budget for 2008-09, an overall raise of Rs 254.34 crore over last year, with a special provision for the 2010 Commonwealth Games.
The Budget includes Rs 890 crore as plan outlay and Rs 221.81 crore as non-plan outlay.
"The Commonwealth Games are only 947 days away. As promised, we shall provide Rs 624 crore in 2008-09. I would urge the authorities concerned to adhere to the strict timelines and the quality standards," Chidambaram said in his Budget speech in Parliament on Friday.
The Commonwealth Games will be held in Delhi October 3-14, 2010.
The provision is meant for upgradation/renovation of the Sports Authority of India stadiums, tennis stadium, upgradation/creation of training venues and preparation of teams for the Games.
A provision has also been made for the grant of loans to the organising committee for holding the Games.
The Finance Minister also provided some relief to the sports good manufacturers.
"To provide a fillip to the manufacturers of sports goods, I propose to reduce the duty on specified machinery from 7.5 per cent to five per cent. I also propose to exempt from duty specified raw materials for sports goods," he said.
An amount of Rs 67.20 crore has been earmarked for different projects/schemes of Northeastern states, including Sikkim, for youth welfare scheme, sports and games.
The Budget includes Rs 890 crore as plan outlay and Rs 221.81 crore as non-plan outlay.
"The Commonwealth Games are only 947 days away. As promised, we shall provide Rs 624 crore in 2008-09. I would urge the authorities concerned to adhere to the strict timelines and the quality standards," Chidambaram said in his Budget speech in Parliament on Friday.
The Commonwealth Games will be held in Delhi October 3-14, 2010.
The provision is meant for upgradation/renovation of the Sports Authority of India stadiums, tennis stadium, upgradation/creation of training venues and preparation of teams for the Games.
A provision has also been made for the grant of loans to the organising committee for holding the Games.
The Finance Minister also provided some relief to the sports good manufacturers.
"To provide a fillip to the manufacturers of sports goods, I propose to reduce the duty on specified machinery from 7.5 per cent to five per cent. I also propose to exempt from duty specified raw materials for sports goods," he said.
An amount of Rs 67.20 crore has been earmarked for different projects/schemes of Northeastern states, including Sikkim, for youth welfare scheme, sports and games.
Budget 2008 Brings Cheers To Middle Class
New Delhi: The Finance Minister brought cheer to lakhs of middle class families just as he announced the cut in taxes. The loan waiver for farmers may have been on expected lines, but the real surprise was the when the Finance Minister also extended his generosity to the tax paying middle class.
Finance Minister, P Chidambaram announced, "Salaries up to Rs 1,50,000 — nil, Rs 1,50,000 to Rs 3,00,000 — 10 per cent, Rs 3,00,000 to Rs 5, 00,000 —20 per cent, and Rs 5,00,001 and above 30 per cent.
The above line from the Finance Minister brought a smile to the faces of lakhs of middle class families like the Gulatis, a smart rejig of the income tax slabs bringing a hefty reduction in income tax across board, especially for those who are at the lower end of the tax bracket, women and senior citizens.
Advocate, S K Gulati says, "Our Finance Minister has given relief by increasing the tax limit to the general public. I'm happy about the cut in taxes."
Dr Shravan Kumar Chhabra says, "Inputs for the drug manufacturers duty cut have been made and that will go a long way in cutting down the cost of the medicines, also the 2.25 lakh tax cut for senior citizens makes me happy"
And the benefits will be substantial with an income of exactly Rs 5,00,000 per annum; one will now pay Rs 55,000 compared to Rs 99,000 earlier, which is — a neat saving of Rs 44,000.
The FM has also made a large number of items cheaper to buy, expect a cut of up to Rs 15,000 in the price of small cars, and motorcycles and scooters could be cheaper by Rs 2000.
Water purifiers and medicines have also got cheaper across the board.
The ladies of the Gulati household have mixed views on the budget as the lady of the house Lakshmi Gulati says, "Except water purifiers and cereals there is nothing really for housewives, I am disappointed."
For the salaried class there is very little to fault Mr Chidambaram, but for those with an inclination towards equities, take note that short-term capital gains tax has been hiked to 15 per cent from 10 per cent earlier.
So think before you do those quick daily trades as the FM's message is clear — it's better to be a long-term investor than a day trader.
Finance Minister, P Chidambaram announced, "Salaries up to Rs 1,50,000 — nil, Rs 1,50,000 to Rs 3,00,000 — 10 per cent, Rs 3,00,000 to Rs 5, 00,000 —20 per cent, and Rs 5,00,001 and above 30 per cent.
The above line from the Finance Minister brought a smile to the faces of lakhs of middle class families like the Gulatis, a smart rejig of the income tax slabs bringing a hefty reduction in income tax across board, especially for those who are at the lower end of the tax bracket, women and senior citizens.
Advocate, S K Gulati says, "Our Finance Minister has given relief by increasing the tax limit to the general public. I'm happy about the cut in taxes."
Dr Shravan Kumar Chhabra says, "Inputs for the drug manufacturers duty cut have been made and that will go a long way in cutting down the cost of the medicines, also the 2.25 lakh tax cut for senior citizens makes me happy"
And the benefits will be substantial with an income of exactly Rs 5,00,000 per annum; one will now pay Rs 55,000 compared to Rs 99,000 earlier, which is — a neat saving of Rs 44,000.
The FM has also made a large number of items cheaper to buy, expect a cut of up to Rs 15,000 in the price of small cars, and motorcycles and scooters could be cheaper by Rs 2000.
Water purifiers and medicines have also got cheaper across the board.
The ladies of the Gulati household have mixed views on the budget as the lady of the house Lakshmi Gulati says, "Except water purifiers and cereals there is nothing really for housewives, I am disappointed."
For the salaried class there is very little to fault Mr Chidambaram, but for those with an inclination towards equities, take note that short-term capital gains tax has been hiked to 15 per cent from 10 per cent earlier.
So think before you do those quick daily trades as the FM's message is clear — it's better to be a long-term investor than a day trader.
V-Guard Industries Fixes Issue Price At Rs 82 Per Share
MUMBAI: V-Guard Industries has raised Rs 65.60 crore by fixing its initial public offering’s issue price at Rs. 82 per share.
The issue has constituted 26.80 per cent of the post issue paid-up capital and the net issue to public constitutes 25.46 per cent of the post issue paid-up capital of the company.
The issue was oversubscribed 2.70 times. The issue received an overwhelming response with the qualified institutional buyers' portion being oversubscribed by more than 1.74 times, the retail portion by 4.24 times and the HNI portion by 2.92 times.
V-Guard Industries has embarked on expansion project to be funded by IPO proceeds. The capital raised from the issue will be deployed to set up cable manufacturing facilities in Coimbatore and Uttaranchal, enameling plant at Coimbatore, development and pilot productions plants for water heaters, fans and pumps at Himachal Pradesh and Coimbatore, service and distribution centers at Bangalore, Hubli and Vijaywada.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India.
The issue has constituted 26.80 per cent of the post issue paid-up capital and the net issue to public constitutes 25.46 per cent of the post issue paid-up capital of the company.
The issue was oversubscribed 2.70 times. The issue received an overwhelming response with the qualified institutional buyers' portion being oversubscribed by more than 1.74 times, the retail portion by 4.24 times and the HNI portion by 2.92 times.
V-Guard Industries has embarked on expansion project to be funded by IPO proceeds. The capital raised from the issue will be deployed to set up cable manufacturing facilities in Coimbatore and Uttaranchal, enameling plant at Coimbatore, development and pilot productions plants for water heaters, fans and pumps at Himachal Pradesh and Coimbatore, service and distribution centers at Bangalore, Hubli and Vijaywada.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India.
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