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MUMBAI: eClerx Services is eyeing a mop-up of Rs 101 crore from its initial public offering which opens on December 4. The company has priced its Rs 10 share at Rs 270-315 per share in the 100 per cent book building offering. The issue closes on December 7.
eClerx Services proposes to utilise the net proceeds to fund acquisitions, infrastructure investments and for setting up additional facilities.
CRISIL has rated eClerx Services “IPO Grade 3/5”, indicating average fundamentals.
The issue comprises fresh issue of equity shares and an offer for sale by PD Mundhra, Anjan Malik and Burwood Ventures of 890,000 equity shares.
Book running lead managers to the issue are JM Financial Consultants and Edelweiss Capital.
The shares will be listed on the National Stock Exchange and Bombay Stock Exchange.
eClerx Services’ portfolio of services comprises data analytics, operations management, data audits, metrics management and reporting services. It provides service solutions using a mix of custom designed data processes with the assistance of delivery teams comprising generalists and domain specialists, and in-house software to automate processes.
The company’s unconsolidated revenues grew to Rs 86.23 crore in 2006-07 (Apr-Mar) from Rs 47.75 crore in FY06 and Rs 26.64 crore in FY05 at compound annual growth rate of 79.9 per cent. Profit after tax grew to Rs 40.52 crore in FY07 from Rs 24.04 crore in FY06 and Rs 11.22 crore FY05.
For the six months ended September 30, 2007, eClerx’s unconsolidated revenues were Rs 51.44 crore while net profit was Rs 16.47 crore.
MUMBAI: BGR Energy Systems plans to enter capital market with its initial public offering of 9,136,000 shares on December 5.
Price band of 100 per cent book building issue of face value Rs 10 is fixed at Rs 425-480 per share.
At the lower price band, the company would Rs 388.28 crore and at the cap-price it would garner Rs 438.52 crore.
BGR Energy Systems plans to utilise the net proceeds to augment long term working capital requirements, expand production capacity by establishing additional manufacturing facilities in India, China and the Middle East.
Net issue to the public will be of 8,636,000 equity shares and would constitute 11.99 per cent on the post-issue paid up capital.
BGR Energy Systems has entered into agreements with certain investors for a placement of 2,880,000 equity shares and a transfer by its promoter of 1,440,000 equity shares.
SBI Capital Markets, Kotak Mahindra Capital Company, UBS Securities and CLSA India are the book running lead managers to the issue.
MUMBAI: Even as Reliance Power's initial public offer (IPO) awaits clearance from market regulator, SEBI, a dispute has broken out among traders in the grey market, where deals had been entered into even before the issue’s price band has been fixed.
Market watchers say the situation has arisen following the company’s decision to float the shares at a face value of Rs 10 instead of Rs 2 as announced earlier.
A section of grey market operators, which had short sold Reliance Power shares in the grey market, and are staring at potentially huge losses, is using this development as a pretext to renege on their commitments. Technically, if there is a change in the face value of a share, the premium or discount will change to reflect the new face value.
Transactions in the grey market are done purely on the basis of trust and there are no documents because the activity — though widely prevalent — is outlawed in the first place.
Grey market players said some brokers in Mumbai and Ahmedabad, who initially threatened to backtrack from their commitments, have now agreed to stand by their trades. However a large number of brokers in Jaipur, who owe allegiance to a Mumbai-based operator, are said to have refused to honour their commitments.
The operator in question is said to have run up a loss of over Rs 50 crore. All these players are believed to have been selling Reliance Power shares short when they were trading at a premium of Rs 30-35 per share a couple of months back.
While the issue has been delayed, the premium in the grey market has been steadily on the rise. As a result these players have run up significant losses.
Interestingly, Reliance Power is the first instance of an IPO being traded in the grey market even before the price band has been fixed. Premium or discount in the grey market is linked to the price band. But in the case of Reliance Power, it was the purely the premium that was being traded.
“This (grey) market operates purely on faith and if that is broken, people will be wary of entering into deals,” said a broker who arranges transactions in the grey market. The deals are entered into verbally, and the shares change hands on the trading screen once they are listed.
Grey market is a thriving racket in many small towns of the country, where applicants “rent out” their permanent account numbers (PAN) and demat accounts for a fee. These applicants subscribe to IPOs, but have already handed over signed delivery instruction slips to the brokers with whom they have struck the deal. Once the shares are allotted, the broker transfers those shares into his own account.
