Kabirdass Motor to invest Rs 100 cr, files for IPO

Mumbai: Kabirdass Motor Co has approached the Securities and Exchange Board of India (SEBI) with a draft prospectus for an initial public offer to partly finance its plans to invest more than Rs 100 crore in its business.

The company is planning for different options to raise Rs 81.28 crore from the sale of its shares, including Rs 61.28 crore from the IPO. Apart from that, it has tied up for a bank term loan worth Rs 20 crore, as per its draft IPO prospectus filed with the SEBI.

The total investment plan of Rs 101.28 crore includes those for land, building, plant and machinery, research and development, brand promotion and other expenses.

Chennai-based Kabirdass Motor Company Limited was incorporated in November 2006 as a private limited company. It is engaged in the manufacturing and distribution of electric bikes and scooters under the brand name 'Xite'.

Source: Asian CERC

Godrej Properties plans IPO

Godrej Properties, the realty arm of Godrej, plans to come out with an IPO (initial public offering) this fiscal. This IPO is coming at a time when the realty index has given up 71% in the last year. The recent salary hike of government employees, as well as fall in property prices and cut in lending rates may give a support to the falling property prices.

Recently, Godrej Industries has announced buy back of shares of 5.70 lakh equity shares at a price not exceeding Rs275, which translates into a 9.9 per cent stake.

Source: Asian CERC

Middle East IPOs raise $83.6 m in Q1 of 2009

Dubai: Middle-East companies raised $83.6 million through two IPOs in the first quarter of this year. However, this is 97.9 per cent lower as against fund raised in 2008, an Ernst & Young report has said.

$3.98 billion was raised through 13 IPOs in the first quarter of 2008, Ernst & Young's first quarter Global IPO update 2009 has said.

Saudi Arabia's Etihad Atheeb Telecommunications was the largest IPO in the Middle East during this period, which raised $80 million and listed on the Riyadh Stock Exchange. The company was ranked third in terms of capital raised among a total of 50 IPOs worldwide, all of which raised just $1.4 billion, it said.

A Syrian company, Al Adham Foreign Exchange Co, was the only other regional IPO in Q1 2009. It raised $3.62 million and listed on the Damascus Stock Exchange.

Source: Asian CERC

Rights issues were priority of FY09

Most of the Indian companies were using existing investor's route for raising capital last year mainly due to economic turmoil. Awful market condition led loss of investor appetite in new share issues and also froze out overseas funding avenues.

Rights issues, the route through which companies raise funds by issuing fresh shares to existing investors emerged as the single-biggest fundraising route during the year as compared to initial public offers (IPOs) and overseas issues that dominated fundraising in the previous year.

According to Prime Database, companies raised Rs 12,622 crore through 23 rights issues in 2008-09 compared with Rs 2,023 crore through IPOs during the period. The amount raised through rights issues last year, however, more than halved compared to Rs 32,518 crore by 30 companies last year. However, the extent of decline was much less than IPOs, which tumbled 95 per cent during the same period.

Rights issues are the current flavour. Companies are looking to tap existing shareholders as valuations are too attractive to dilute to outsiders, says Ravi Sardana, senior vice-president of ICICI Securities.

Source: Asian CERC

SEBI wants legal opinion on NSDL order

The Securities and Exchange Board of India (Sebi) on Monday said it will look for an external legal opinion on whether the board of Sebi has the right to scrutinize the orders of special committee passed after the quasi-judicial proceedings against NSDL. The board has decided to keep back the committee's orders till opinion. The committee was set up after CB Bhave, former NSDL chairman, took over at Sebi.

The case deals with Sebi's investigations into 21 IPOs between 2003 and 2005. Sebi's investigate revealed that the shares, which was reserved for retail investors were illegally acquired by various entities through thousands of untrue applications. The regulator want advice of legal counsel on whether the committee has acted within the framework and terms of reference established by the board resolution.

Source: Asian CERC

UBI IPO may come out by February 2010

United Bank of India (UBI) is planning for its proposed maiden public offer on a February 2010. The bank received Cabinet clearance for the long-awaited capital restructuring. UBI is one of the two public sector banks that are not listed. The other one is 'The Punjab & Sind Bank'.

UBI chairman and managing director Satish C Gupta said the bank intends to file the red herring prospectus with Securities & Exchange Board of India (SEBI) after September 2009 once it comes up with its audited half yearly results.

We will go public in the third or the fourth quarter. It's now on top of our agenda, the CMD said. Although the bank is still to decide the size of the IPO, Mr Gupta indicated that it would be not less than Rs 50 crore.

Source: Asian CERC

United Bank plans to float IPO in 6 months

Kolkata: United Bank of India is looking at the option of floating an initial public offer in six to nine months with an equity issue of Rs50-60 crore. The bank at a premium of Rs 100 a share would be able to mobilise around Rs 500-600 crore worth Tier I capital. The bank's paid-up equity capital will be reduced to Rs 266 crore.

The cabinet recently has approved the capital restructuring plan of the bank, which would include reduction in paid-up equity by over 80 per cent to improve its financial parameters. Moreover, the restructuring would enhance the bank's book value of shares to Rs 84-85 (up from Rs 14 at present) and it would further improve to Rs 100 after the IPO. The paid-up capital of the bank would reduce to Rs 266 crore (Rs 1,532 crore). The excess capital of Rs 1,266 crore would be infused into the bank's capital reserves.

Source: Asian CERC

MCX chief denies IPO revival plans

Multi Commodity Exchange of India (MCX), has declined any plans to renew its deferred initial public offering (IPO), a top company official said on late Monday.

These are rumours... said Joseph Massey, managing director of the bourse, said in response to some media reports quoting sources about a revival in MCX IPO plans.

MCX had in August 2008, shelved its IPO, taking into consideration the market scenario and the advice of the merchant bankers.

MCX, a unit of Financial Technologies India Ltd, had filed an offer document with the market regulator in February 2008 and media reports had estimated the size of the issue at around 5-6 billion rupees.

Source: Asian CERC

MCX to revive IPO plans; may soon file fresh prospectus

Multi-Commodity Exchange (MCX), is expected to be reviving the initial public offer (IPO) and may soon approach the SEBI. The MCX had put on hold its IPO plan within a year back.

The promoter of MCX, Jignesh Shah-led Financial Technologies (FTIL), is supposed to have sounded out some investment bankers and brokers in recent times about the possibility of reviving plans for the IPO, according to the market sources.

As per company policy, we do not respond to day to day market news and rumours. We also do not do selective disclosures, a company spokesperson said in an emailed statement.

At the time of achieving the milestone we report it to stock exchanges so that the information regarding development is uniformly distributed to all stakeholders, he added.

There are also speculations that the IPO revival plans could be due to pressure from some investors such as Citigroup and Fidelity, who wanted to exit after MCX's listing.

Source: Asian CERC

No sign of relief for IPO market

There is no sign of relief for the IPO market. The come back of Sensex to the 10,000-level is doubtful to prompt a revitalization in the primary market in the future. The doubt is there as foreign institutional investors (FII) continue to introverted and also there are concerns for the general elections.

According to Prithvi Haldea of Prime Database, it's not the Sensex level by itself, but the stability and positive outlook for the secondary markets that's important for the primary market. He points out to the spate of successful IPOs in 2005-06, when the Sensex was between 8,000-16,000 points.

India's primary markets have been on a dried up since 2007. So far in 2009, only one initial public offer (IPO) has seen the light of the day, raising Rs 23 crore. There was a enlistment of Rs 16,927 crore in 2008, almost 63 per cent down from the Rs 45,137 crore raised in 2007 through public equity issues, comprising both IPOs and FPOs, according to Prime Database.

 

Source: Asian CERC

Sistema-Shyam to list in 18 months

Shyam Sistema Teleservices, which is the joint venture between Kolkata based Shyam group and Russian diversified company Sistema, announced that are planning to get themselves listed in India in a year and a half. On Thursday the company committed to invest US $ 5 billion, primarily in telecom infrastructure development in India, over the next 5 years. The company made announcement while launching its CDMA mobile prepaid services only in the unified circle of Tamil Nadu, Chennai and Pondicherry under Sistema's MTS brand,

At present, the company's network in Tamil Nadu is presently supported by its own telecom electronic equipment. However, its towers are either self owned or shared with other mobile operators on a 10:90 ratio. Moving forward, we plan to change this ratio to 30:70 in the first year, as it's effective network coverage and quality of service that we are leveraging as our strength, said Sistema-Shyam president and CEO Vsevolod Rozanov.

 

Source: Asian CERC