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Gammon Infra IPO opens on Mar 10
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Monday, March 3, 2008 |
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Gammon Infrastructure Projects Ltd is entering the capital market with its initial public offering of 1,65,50,000 equity shares of Rs 10 each for a price to be determined through book building process.
The issue will open on Mar 10, and close on Mar 13. The price band has been fixed between Rs 167 and Rs 200 per share. The issue has been graded by Credit Analysis & Research as CARE IPO Grade 4, indicating above average fundamentals.
The issue comprises net issue of 1,48,95,000 shares to the public and a reservation of 16,55,000 shares for eligible employees. The issue and the net issue will constitute 11.45 per cent and 10.30 per cent respectively of the post-issue paid up capital.
At least 60 per cent of the net issue will be allocated to qualified institutional buyers. Further, 5 per cent of the QIB portion will be available for allocation to mutual funds only. At least 10 per cent of the net issue will be available for allocation to non-institutional bidders and at least 30 per cent to retail investors.
Investors can avail of two modes of payment. Under 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 share. And the balance payable shall be paid by the due date.
Under Payment Method-II, the amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100 per cent of the bid amount, and, in the case QIBs, will be 10 per cent of the bid amount with the balance being payable on allocation.
Gammon Infrastructure Projects is an infrastructure project development company promoted by the 85-year old Gammon Group. Presently, GIPL undertakes and develops projects such as roads, bridges, ports, hydroelectric power and biomass power projects on a PPP basis.
The Issue proceeds will be utilised to:
contribute to a part of the investment required by KBICL, its subsidiary formed for the design, construction, finance & maintenance of a 1.8 kilometer long four-lane bridge across river Kosi including 8.2 kilometers long approach roads and Guide bund & Afflux bund on NH-57 in the Supaul district of Bihar;
for the investment required by GICL, its subsidiary formed for the design, construction, finance & maintenance of a 32 kilometer long four-lane bypass to Gorakhpur town on NH-28 in the state of Uttar Pradesh;
for the investment required by SHPVL, its subsidiary formed for developing the Rangit-II hydroelectric power project in the state of Sikkim;
for infusion of funds into MNEL, its subsidiary formed for the four-laning of the 99.5 kilometers Vadape-Gonde section (between Mumbai and Nasik) of NH 3 on BOT basis;
repayment of loan to Gammon India and general corporate purposes and investment in strategic initiatives and acquisitions. Source : Economic Times |
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posted by www.OnlineEquityCalls.com @ 9:20 AM  |
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Gammon Infrastructure files IPO papers
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Thursday, February 28, 2008 |
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Gammon Infrastructure Projects, a subsidiary of Gammon India has filed papers for the initial public offer of 1,65,50,000 equity shares of face value Rs 10 each.
The issue comprises 1,48,95,000 shares to the public and a reservation of 16,55,000 shares to eligible employees.
The IPO is being made on 100 per cent book building proces, with the price band of Rs 167- 200. The issue will remain open from March 10, 2008 to March 13, 2008.
On Thursday, Gammon India shares closed down 0.17 per cent at Rs 504.75 Source : Economic Times |
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posted by www.OnlineEquityCalls.com @ 6:26 AM |
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ADAG to go ahead with IPO plans of group firms
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Sunday, February 24, 2008 |
Mumbai (PTI): Undeterred by a dismal performance of Reliance Power IPO, which it attributes to abnormalities in the equity market, Anil Ambani Group on Sunday said it will go ahead with listing plans of its other firms. The firm has lodged a complaint with market regulator Securities and Exchange Board of India, seeking investigation in "price hammering" of its shares since listing on February 11. "The fact that seven Mauritius-based FIIs sell in a falling market has got to do something more than that meets the eye," Group Chairman Anil Ambani told reporters here. "Our common complaint to SEBI is price hammering where within four minutes of listing, the stock price comes down from Rs 540 to Rs 380," he said. The scrip, after listing at Rs 547.8, slid into red within a minute and closed at Rs 372.5, a level much below the issue price. Investors in the company lost over Rs 1,700 crore on February 11, the day the scrip debuted on the stock exchanges. On whether he would go slow on listing other group companies such as Reliance Infratel, he said: "There is no rethink on the issue. A DRHP has been filed. We will wait for the right time." The group had raised USD 3 billion through the Reliance Power IPO - the largest in the country. It has also filed draft papers for initial public offer of Reliance Infratel, a subsidiary of Reliance Communications. The company proposes to raise Rs 6,000 crore through the offer with an issue of 8.91 crore shares, representing about 10.05 per cent equity in Reliance Infratel. The issue proceeds are proposed to be utilised toward funding development of passive infrastructure and general corporate purposes. Source : Hindu.com |
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posted by www.OnlineEquityCalls.com @ 9:43 AM |
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Govt asks ICAI to prepare report on IPO valuation
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In the wake of controversy relating to valuation of public issues, the government has directed the apex body of chartered accountants, ICAI, to conduct a study on the initial public offer pricing and suggest ways for protecting the interest of investors.
"The government has asked the Institute of Chartered Accountants of India (ICAI) to study the issue of IPO valuation and system of stock movements. The ICAI will submit a report on the valuation of IPO in due course," Corporate Affairs Minister Prem Chand Gupta told reporters.
"The ICAI study would take into account the practice followed in other countries as well as India and suggest ways for dealing with it," he said, adding that the apex body would also advise the government on making the whole process of IPO valuation more transparent.
When contacted, the ICAI President Ved Jain said that the institute has constituted a group of technical experts to study the issue of IPO valuation.
The institute, he said, would compare the Indian practices with the best in the world and also study how the other countries have dealt with the problems concerning IPO valuation.
The problem of the IPO valuation came to fore with public issue of some companies plunging below the issue price even on the listing day or afterwards, leaving investors high and dry.
"... the tactical fight for market share (in the industry) is not likely to engage her for long. At some point, that role in government will beckon," the Fortune report had said.
It further added that "Nooyi is an entirely different kind of CEO, a product of her native India as well as of PepsiCo's family-values approach to grooming CEOs."
"... She is not hung up on pay... She is 52 years old and does not plan for this job to be her last. Her friend Henry Kissinger predicts that it is only a matter of time before she is plucked for a big Washington post, possibly a cabinet job, and Nooyi acknowledges that at some point, she'd like that."
The report quoted Kissinger, who consults PepsiCo and other companies on international matters, as saying: "If you look at the job entirely from the American perspective, then it becomes impossible to run a global business."
Fortune said that Nooyi was a "cosmopolitan, rigorously educated, and a strategic thinker" and her background of Boston Consulting Group makes her fit for "burgeoning markets in Russia and China than in the noisy US cola wars."
"A dinner gathering at her house is as likely to include Tony Blair and government ministers from India or Mexico as traditional pinstriped business types," it noted.
The top place on the Forbes list has been grabbed by Catherine Burzik of medical technology company Kinetics Concept, followed by Meg Whitman of internet auction giant eBay and Linda Lang of Jack in the Box, a US fast food chain.
Other names in the list are Susan Ivey of Reynolds American (4th), Anne Stevens of speciality alloy manufacturer Carpenter Technology (5th), Andrea Jung of Avon Products (6th) and Western Union's Christina Gold at the seventh position.
Nooyi was named among the top ten most powerful women in the world in a list prepared by Forbes late last year, which included people from areas of business, politics and entertainment among others.
Source : Economic Times |
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posted by www.OnlineEquityCalls.com @ 12:35 AM |
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NKG Infra plans Rs 90-cr IPO
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Saturday, February 23, 2008 |
| NKG Infrastructure, an infrastructure and power sector EPC (erection, procurement and construction) player, plans to float an initial public offering (IPO) in the second week of April, to raise about Rs 80-90 crore for funding its expansion plans. | | | | The company plans to issue 63 lakh equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process constituting 44.41 per cent of the fully-diluted post-issue paid-up capital. | | | | NKG Infrastructure has filed the draft red herring prospectus (DRHP) with the Sebi, said company officials. | Source : BS Reporter |
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posted by www.OnlineEquityCalls.com @ 10:50 PM |
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Well-priced PSU issues are hot in IPO market
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The response to the Rural Electrification Corporation (REC) issue subscription signifies the fact that irrespective of general market conditions, well-priced issues of companies with strong fundamentals are accepted by investors.
Even more significant, investors feel a lot safer to invest in issues where government is the promoter.
And to the delight of investors, about 75 closely-held government companies and banks have evinced interest in diluting their equity and going public. If all goes well, the year 2008 would see a host of PSU public issues hitting the Indian capital market.
"Though strategic decision-making powers still rest with the government, we are seeing more decentralisation happening with regard to PSUs. Many a time, decisions pertaining to capital infusion and expansion are taken by managers themselves," said Crisil's senior economist Sunil Sinha. "
As far as stake dilution goes, it is still a political decision; but there are many sectors where government wants to either exit or augur in more private participation. Companies in such sectors should get easy approvals for unlocking value," Mr Sinha added.
According to a recent Edelweiss Capital report on IPOs, several PSUs are expected to come up with fresh issue of shares during the year. Much awaited-public issues of the year include NTPC (which has plans to raise Rs 6,000 crore), HPCL (Rs 5,000 crore), Coal India (Rs 3,000 crore) and Gujarat State Petroleum Corporation (Rs 4,000 crore). The prospective merger of SBI and its listed subsidiaries, slated to happen sometime in 2008, will also be a closely-followed affair.
On the follow-on public offering (FPO) front, the Rs 12,000-crore issue of SBI would also be an opportunity for existing investors to invest in the banking behemoth. Indian Bank has filed an offer document with Sebi for raising Rs 800 crore.
However, according to experts, one of the key challenges for the PSUs would be pricing and the timing of the issue since the market is volatile. Taking cues from the recent 'IPO bashing' on the D-Street, investors do not like over-priced issues in bearish and indecisive market conditions. "The present times may not be great for public issues; but if you look at IPOs are still happening. Fairly priced issues are still well-received by investors. So once secondary market stabilises, there will be several issues both PSUs and others hitting the market," said Kotak Investment Banking COO, S Ramesh. Mr Ramesh feels investors like PSU issues as they find a lot of hidden value in government-controlled companies.
According to Edelweiss Capital research head Shriram Iyer, PSU issues are liked by investors because they have a great track record and an established business. "No matter what, well-structured PSU issues operating in growth sectors get its due in the market. There are a few issues that are lined up; subject to government approval and market condition, they will hit capital markets in the months to come," Mr Iyer added.
However, there is always lethargy attached to the working of listed PSUs vis-a-vis private firms. "The prime motive of private sector companies is enhancement of shareholder value. PSUs, on the other hand, has to meet several social objectives. Many a time, social objectives of a PSU conflict with the profit motive," said an equity research head of a foreign brokerage.
Source : TET |
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posted by www.OnlineEquityCalls.com @ 10:49 PM |
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Future Ventures plans IPO to raise Rs 3,750cr
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| Future Ventures India Ltd (FVIL), the venture capital arm of Kishore Biyani's Future Group, is ready to hit the market with an initial public offer of around Rs 3,750 crore. | | | | The issue will carry a small price band to make it affordable to the retail investor. The company will issue 3,736.15 million shares. | | | | "The idea is to make it affordable to retail investors as the group did with retail ventures such as Big Bazaar, which attracted the masses with low prices," sources said. | | | | The last at-par issue was done by Saamya Biotech India, which raised nearly Rs 15 crore from the market. | | | | The announcement comes barely three weeks after the listing of Future Capital Holdings (FCH), the financial arm of Kishore Biyani's Future Group. FCH raised nearly Rs 490 crore from the market. | | | | Future Ventures has already filed a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for the proposed issue. | | | | Carved off as a separate company with initial capital of Rs 250 crore, Future Ventures has received Rs 325 crore funding from parent Pantaloon. | | | | Future Ventures is expected to invest in new areas and the real estate projects of the Future group. FVIL is also expected to invest and execute the Future group's joint ventures and investments, which were so far done by the listed entity Pantaloon, sources in the group said. | | | | According to sources, FVIL is in talks with a couple of food and grocery chains in East and South India for an acquisition, which is expected to be completed by the third quarter of this year. | | | | Though the $425 million Indivision Fund, managed by Future Group's financial arm Future Capital, has picked up stakes in several consumer-focused companies, the curbs on foreign direct investments in the retail sector have deterred it from investing in retail companies. | | | | Investors can expect a series of IPOs from Future Group as Biyani has expressed willingness to spin off the group's various ventures. Pantaloon, India's largest listed retailer, owns Pantaloon, Central, Brand Factory, Big Bazaar and Food Bazaar. | | | | The IPO comprises a net issue to the public of 2,660 million equity shares and a reservation of up to 50 million shares for employees and 25 million shares for the shareholders of Pantaloon Retail. | | | | JM Financial Consultants, Enam Securities, Kotak Mahindra Capital, ICICI Securities and Edelweiss Capital are the lead managers to the issue and Centrum Capital, Collins Stewart Inga and India Infoline co-lead managers. | Source : BS Reporter |
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posted by www.OnlineEquityCalls.com @ 9:19 AM |
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