ree Ganesh Jewellery House Limited (Shree Ganesh), one of India’s largest manufacturers and exporters of handcrafted gold jewellery, has planned to hit the capital markets with its proposed public issue.
The bid offer of 1,42,69,831 equity shares of the face value of Rs 10 each opens on March 19, 2010 and closes on March 23, 2010. The company has fixed the price band at Rs 260 to Rs 270 per equity share for the initial public offering.
The IPO will consist of a fresh issue of 1,21,36,497 equity shares by the company itself and an offer for sale 21,33,334 equity shares by its PE investor, Credit Suisse PE Asia Investments (Mauritius) Ltd.
The issue will constitute 23.52 per cent of the fully diluted post issue paid-up capital and the fresh issue will constitute 20 per cent of the fully diluted post issue paid-up capital of the company. At the higher end of the IPO Price Band, the company will raise Rs 328 Crore from the fresh sales of equity shares where as the offer for sale portion for selling shareholder will be Rs 58 crore.
Having set up its first unit at Manikanchan SEZ in 2004 with a capacity of 500 kgs of gold jewellery per year, Shree Ganesh added three additional units at Manikanchan SEZOne more
One more jewellery IPO. Sree Ganesh jewellery ipo opens for Subscription tomorrow. Read further details below.
Sree Ganesh Jewellery House Limited (Shree Ganesh), one of India’s largest manufacturers and exporters of handcrafted gold jewellery, has planned to hit the capital markets with its proposed public issue.
The bid offer of 1,42,69,831 equity shares of the face value of Rs 10 each opens on March 19, 2010 and closes on March 23, 2010. The company has fixed the price band at Rs 260 to Rs 270 per equity share for the initial public offering.
The IPO will consist of a fresh issue of 1,21,36,497 equity shares by the company itself and an offer for sale 21,33,334 equity shares by its PE investor, Credit Suisse PE Asia Investments (Mauritius) Ltd.
The issue will constitute 23.52 per cent of the fully diluted post issue paid-up capital and the fresh issue will constitute 20 per cent of the fully diluted post issue paid-up capital of the company. At the higher end of the IPO Price Band, the company will raise Rs 328 Crore from the fresh sales of equity shares where as the offer for sale portion for selling shareholder will be Rs 58 crore.
Having set up its first unit at Manikanchan SEZ in 2004 with a capacity of 500 kgs of gold jewellery per year, Shree Ganesh added three additional units at Manikanchan SEZ
M S Dhoni has injured his elbow. He is going to miss matches for the next 10 days in IPL 2010.
Raina will captain the team in the meantime.
Chennai Super Kings skipper MS Dhoni has been ruled out of the next few IPL games after an elbow injury. He may be out of action for the next 10 days.
“Dhoni has been diagnosed with an elbow injury and has been advised 10 days rest,” team manager Russell Radhakrishnan said.
Suresh Raina will stand in as Chennai captain. Dhoni hurt his elbow while batting against the Kolkata Knight Riders in Tuesday’s match at Eden Garden. A delivery from new KKR buy and pacer Shane Bond hit Dhoni on the right elbow. Later he underwent an x-ray test.
“Dhoni will be out of action for the next 10 days and the exact nature of his injury is being examined by the doctors at a private hospitals here,” a team management source said.
Despite the injury, Dhoni was Man of the Match for his unbeaten knock of 66. He also took a diving catch to dismiss Owais Shah off Lakshmipathy Balaji’s bowling. Later, during the post-match presentations, the Chennai skipper was seen sporting a pack and bandage on his right elbow and shook hands left-handed.
The source, however, said that Dhoni will be travelling with the team to Delhi, where the Chennai side will take on Delhi Daredevils at Feroz Shah Kotla on Friday. But with Delhi in great form, Chennai will be at a disadvantage without their dashing skipper.
“He will be travelling with the team to Delhi,” the source said.
Apart from the match against the Daredevils, the injury also rules Dhoni out of Chennai Super Kings’ matches against Kings XI Punjab (March 21), Royal Challengers Bangalore (March 23) and Mumbai Indians (March 25).
Chennai began the tournament badly, losing to the Deccan Chargers and the Dhoni-led win against the Kolkata Knight Riders had come as a shot in the arm to the team
Chennai Super Kings skipper MS Dhoni has been ruled out of the next few IPL games after an elbow injury. He may be out of action for the next 10 days.
“Dhoni has been diagnosed with an elbow injury and has been advised 10 days rest,” team manager Russell Radhakrishnan said.
Suresh Raina will stand in as Chennai captain. Dhoni hurt his elbow while batting against the Kolkata Knight Riders in Tuesday’s match at Eden Garden. A delivery from new KKR buy and pacer Shane Bond hit Dhoni on the right elbow. Later he underwent an x-ray test.
“Dhoni will be out of action for the next 10 days and the exact nature of his injury is being examined by the doctors at a private hospitals here,” a team management source said.
Despite the injury, Dhoni was Man of the Match for his unbeaten knock of 66. He also took a diving catch to dismiss Owais Shah off Lakshmipathy Balaji’s bowling. Later, during the post-match presentations, the Chennai skipper was seen sporting a pack and bandage on his right elbow and shook hands left-handed.
The source, however, said that Dhoni will be travelling with the team to Delhi, where the Chennai side will take on Delhi Daredevils at Feroz Shah Kotla on Friday. But with Delhi in great form, Chennai will be at a disadvantage without their dashing skipper.
“He will be travelling with the team to Delhi,” the source said.
Apart from the match against the Daredevils, the injury also rules Dhoni out of Chennai Super Kings’ matches against Kings XI Punjab (March 21), Royal Challengers Bangalore (March 23) and Mumbai Indians (March 25).
Chennai began the tournament badly, losing to the Deccan Chargers and the Dhoni-led win against the Kolkata Knight Riders had come as a shot in the arm to the team
Oh. Again we are going to see an IPO from a reputed PSU. This time its Nalco . National Aluminium Corporation.
The government is considering up to 10 per cent equity dilution in the state-owned aluminium producer Nalco, which may fetch the “The Ministry of Mines will have to take a decision. We have said that they could consider 5-10 per cent stake sale,” Disinvestment Department Joint Secretary Sidhartha Pradhan said.
At present, the government holds about 87.15 per cent equity in the navratna company while the rest has been made public.
Last year, Mines Minister B K Handique had ruled out any further disinvestment programme in the aluminium producer.
However, with the government planning to raise about Rs 40,000 crore from disinvestment in the next financial year, the Ministry may now review its decision.
But, the company may not look at raising fresh equity along with the proposed stake sale, as recently indicated by Nalco CMD A K Srivastava recently.
The Ministry of Mines is currently considering a further Public Offer (FPO) of its ailing PSU Hindustan Copper Ltd, to raise an estimated about Rs 4,500 crore for each the miner and itself.
Based on the current share price, the government could raise about Rs 2,220 crore from the proposed up to 10 per cent disinvestment. However, the final sum would depend on the rate at which the government decides to sell its stake.
The Centre is likely to go ahead with divestment in 12-15 public sector units, including SAIL, Coal India, Hindustan Copper, SJVNL and EIL among others next fiscal to raise Rs 40,000 crore, as stated in the Budget.
The sell-off roadmap for the next fiscal will be prepared by the end of next month and may include BSNL as well, Pradhan said.
He further said that disinvestment in Satluj Jal Vidyut Nigam would be carried out in April, Engineers India in May-June, SAIL in August-September and Coal India around the end of the year.
ILFS IPO Allotment status will be put up here as soon as it is available. Retail Investors should get a pretty decent allocation.
IL&FS Transportation Networks’ (ITNL) initial public offering (IPO) has been fully subscribed, as per data available on the NSE website. The issue received bids for 2.39 crore equity shares as against issue size of 2.37 crore equity shares.
The company plans to raise upto Rs 700 crore through this issue, which will close on Monday, March 15.
It already received a committment of Rs 126 crore from anchor investors (AIs). AIs subscribed for 48,83,720 equity shares at Rs 258 per equity share, at higher end of price band at Rs 242-258.
ITNL was incorporated by IL&FS (an infrastructure development and finance company) in 2000, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure.
The offer for sale will include 42.8 lakh shares by Trinoka Trinity Capital (a UK-based fund), which will be Rs 110 crore at Rs 258 per share.
The book running lead managers to the issue are Enam Securities, Nomura Financial Advisory and Securities and JM Financial. The co-BRLMs to the issue are SBI Capital Markets and Avendus Capital. The shares will be listed on both the BSE and the NSE.
IL&FS Transportation Networks’ (ITNL) initial public offering (IPO) has been fully subscribed, as per data available on the NSE website. The issue received bids for 2.39 crore equity shares as against issue size of 2.37 crore equity shares.
The company plans to raise upto Rs 700 crore through this issue, which will close on Monday, March 15.
It already received a committment of Rs 126 crore from anchor investors (AIs). AIs subscribed for 48,83,720 equity shares at Rs 258 per equity share, at higher end of price band at Rs 242-258.
ITNL was incorporated by IL&FS (an infrastructure development and finance company) in 2000, in order to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure.
The offer for sale will include 42.8 lakh shares by Trinoka Trinity Capital (a UK-based fund), which will be Rs 110 crore at Rs 258 per share.
The book running lead managers to the issue are Enam Securities, Nomura Financial Advisory and Securities and JM Financial. The co-BRLMs to the issue are SBI Capital Markets and Avendus Capital. The shares will be listed on both the BSE and the NSE.
NMDC IPO has been a failure . It got Subscribed less than 1 time.
National Mineral Development Corporation IPO ends today.
Allotment status and Allocation details of this ipo will be posted here as soon as it is available.
Retail portion looks under subscribed even now at this point of time. So your chance for getting the share is very high. Listing date and Price will soon be put up here.
Current Market Cap is Rs.1,43,000 crores
Im applying a considerable amount for this issue now. Share your views people.
Deepika Padukone is set to perform in IPL Opening Ceremony this year.
Last year Katrina Kaif gave us a splendid performance.
Its rumoured that Deepika has been signed for Rs.75 Lakhs
Grammy Award winner American singer Lionel Richie will tube Hit 3 and Can’t Slow Down. British band UB40 is also performing in inaugural ceremony.The band has placed more than 50 singles in the UK Singles Chart, and has also achieved considerable international success. The band has sold over 70 million records. Their hit singles include “Red Red Wine”, “Kingston Town”, “Can’t Help Falling in Love” and “I Got You Babe”.
Here are few Deepika Padukone Pics . Enjoy seeing them.
Reliance Industries takes a Deep Water Drill Ship for lease.
News story from Economictimes
Reliance Industries has leased a brand new ultra-deepwater drillship to boost its eastern offshore exploration
campaign.
“The new-build ultra-deepwater drillship Dhirubhai Deepwater KG2… commenced operations for RIL in India under a five-year drilling contract,” Transocean Ltd, which built the rig, said in a statement.
RIL had awarded a five-year drilling contract to a joint venture of Transocean and Pacific Drilling to construct and operate the drillship. RIL will pay USD 495,000 per day for the Samsung-design drillship for first six months and USD 510,000 per day for the remaining period of the contract.
“The dynamically positioned Dhirubhai Deepwater KG2, one of the 24 ultra-deepwater floaters in the Transocean fleet, includes the most advanced drilling capabilities in the offshore drilling industry,” the statement said.
Transocean is also building an enhanced Enterprise-class drillship, named Discoverer India, for RIL. Operations are expected to commence during the fourth quarter of 2010.
RIL will pay a day rate of USD 537,000 for the first six months for Discover India and USD 557,000 for the remainder period of the initial five-year contract. The company can extend the term of the drilling contract to seven or 10 years.
Reliance Industries has leased a brand new ultra-deepwater drillship to boost its eastern offshore exploration campaign.
“The new-build ultra-deepwater drillship Dhirubhai Deepwater KG2… commenced operations for RIL in India under a five-year drilling contract,” Transocean Ltd, which built the rig, said in a statement.
RIL had awarded a five-year drilling contract to a joint venture of Transocean and Pacific Drilling to construct and operate the drillship. RIL will pay USD 495,000 per day for the Samsung-design drillship for first six months and USD 510,000 per day for the remaining period of the contract.
“The dynamically positioned Dhirubhai Deepwater KG2, one of the 24 ultra-deepwater floaters in the Transocean fleet, includes the most advanced drilling capabilities in the offshore drilling industry,” the statement said.
Transocean is also building an enhanced Enterprise-class drillship, named Discoverer India, for RIL. Operations are expected to commence during the fourth quarter of 2010.
RIL will pay a day rate of USD 537,000 for the first six months for Discover India and USD 557,000 for the remainder period of the initial five-year contract. The company can extend the term of the drilling contract to seven or 10 years.
Here is the transcript of Director of supreme infra with CNBC Tv
Supreme Infrastructure has bagged two orders worth Rs 405 crore. In an interview with CNBC-TV18, Vikas B Sharma, Whole Time Director of spoke about the nature of the order.
Here is a verbatim transcript of an exclusive interview with Vikas B Sharma on CNBC-TV18. Alos watch the accompanying video.
Q: Take us through these orders, how long do they last? What kind of margins will they bring?
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A: These are two orders which would be awarded to the company. One is in the road segment and other is in the power distribution part of it. The road contract is going to be awarded by Punjab Government for the bypass for the entire Ludhiana town. The entire stretch is to be constructed in the two year period. This is a contract worth Rs 330 crore and the major part of it is the structural part which gives us the alignment of the Sizwan Canal, which is a very important canal in Punjab.
The strategic part is that we have to construct structures worth Rs 150 crore in the entire project. So the entire project is going to give us an EBITDA of somewhere around 16-17% on a minimum basis. The turnover and the revenue from this contract starting from April to next financial year would be about 60% of the contract size. Hence, we would be talking to somewhat Rs 100-110 crore by next financial year and the other project is into power distribution. We have quoted this contract at 18% above the estimated cost that is the estimated cost of the Maharashtra State Electricity Distribution, we have to erect the transformers and do the cabling and b erections in these contracts and we have to transform the power generation from the generation point to the grid part of it and upon the commissioning we will be raising bill to the department and thereby we would be releasing payments for the work done.
Q: What is your total order book in all these three segments, the road, power and railways? You had said earlier that your railways project would commence by March 2010, is that timeline still intact?
A: Yes that is still intact. We had some rail projects in process which were in cost about Rs 30 crore that entire phase would be done by the end of this financial year, March 2010. The overall order book accounting into these contracts awarded today comes to Rs 1470 crore. Out of the existing order book, 58% is been dominated by the roads, bridges and power project comes to somewhere around 10% of the overall order book because apart from these there are three more packages where in we are awaiting for the work orders.
Q: How much will it take your order book to?
A: The order book would touch about Rs 2,000crore.
Q: What kind of revenue uptick do you expect in next couple of quarters? You did about Rs 125 crore in third quarter. When would all of this start to trickle in?
A: We have recently got the orders. So, we would be mobilizing and our self would be starting of next financial year that is mid-April. We expect 50% of sales to be booked form both these contracts by the next financial years, but for the first quarter we are expected to be somewhere around 10-15%.
Q: What do you expect this order book to last you? How long will you take to execute Rs 1500 crore order book?
A: That is to be executed over a period of two years. There are certain contracts which are worth around Rs 600 crore. This is the spill over order book and the ongoing projects. So that order book should be completed by us in the second quarter of the next financial year that is September 2009. We are targeting somewhere around Rs 800 crore for the next financial year. This is on the minimum side of it with the orders that we have in hand.
Supreme Infrastructure has bagged two orders worth Rs 405 crore.
Vikas B Sharma, Whole Time Director of spoke about the nature of the order.
Here is a verbatim transcript of an exclusive interview with Vikas B Sharma on CNBC-TV18.
Q: Take us through these orders, how long do they last? What kind of margins will they bring?
A: These are two orders which would be awarded to the company. One is in the road segment and other is in the power distribution part of it. The road contract is going to be awarded by Punjab Government for the bypass for the entire Ludhiana town. The entire stretch is to be constructed in the two year period. This is a contract worth Rs 330 crore and the major part of it is the structural part which gives us the alignment of the Sizwan Canal, which is a very important canal in Punjab.
The strategic part is that we have to construct structures worth Rs 150 crore in the entire project. So the entire project is going to give us an EBITDA of somewhere around 16-17% on a minimum basis. The turnover and the revenue from this contract starting from April to next financial year would be about 60% of the contract size. Hence, we would be talking to somewhat Rs 100-110 crore by next financial year and the other project is into power distribution. We have quoted this contract at 18% above the estimated cost that is the estimated cost of the Maharashtra State Electricity Distribution, we have to erect the transformers and do the cabling and b erections in these contracts and we have to transform the power generation from the generation point to the grid part of it and upon the commissioning we will be raising bill to the department and thereby we would be releasing payments for the work done.
Q: What is your total order book in all these three segments, the road, power and railways? You had said earlier that your railways project would commence by March 2010, is that timeline still intact?
A: Yes that is still intact. We had some rail projects in process which were in cost about Rs 30 crore that entire phase would be done by the end of this financial year, March 2010. The overall order book accounting into these contracts awarded today comes to Rs 1470 crore. Out of the existing order book, 58% is been dominated by the roads, bridges and power project comes to somewhere around 10% of the overall order book because apart from these there are three more packages where in we are awaiting for the work orders.
Q: How much will it take your order book to?
A: The order book would touch about Rs 2,000crore.
Q: What kind of revenue uptick do you expect in next couple of quarters? You did about Rs 125 crore in third quarter. When would all of this start to trickle in?
A: We have recently got the orders. So, we would be mobilizing and our self would be starting of next financial year that is mid-April. We expect 50% of sales to be booked form both these contracts by the next financial years, but for the first quarter we are expected to be somewhere around 10-15%.
Q: What do you expect this order book to last you? How long will you take to execute Rs 1500 crore order book?
A: That is to be executed over a period of two years. There are certain contracts which are worth around Rs 600 crore. This is the spill over order book and the ongoing projects. So that order book should be completed by us in the second quarter of the next financial year that is September 2009. We are targeting somewhere around Rs 800 crore for the next financial year. This is on the minimum side of it with the orders that we have in hand.
Stock market regulator Sebi has banned 100 entities related to the Bank of Rajasthan (BoR), including several members from the Tayal
family, the promoters of the bank, from all stock market-related activities. Several of the entities banned are listed companies controlled by the Tayals directly or by their friends and associates.
Acting on a reference from the banking regulator Reserve Bank of India (RBI), Sebi conducted an investigation into the shareholding patterns in BoR since 2007. It was found that the entities which were banned were acting in connivance with the Tayals to corner BoR shares. This, in turn, helped the Tayals to disclose a shareholding pattern that conformed to the RBI rules relating to promoters’ holding in banks. However, the same shareholding pattern did not adhere to RBI’s main idea of separation of control and management.
The late-evening order, signed by Sebi’s wholetime director K M Abraham, banned entities including Pravin K Tayal, Navin K Tayal, Sanjay K Tayal and Saurabh P Tayal, the main promoters of the bank. Among the listed entities barred from the market were Jaybharat Textiles, Eskay K’n'IT, KSL & Industries, Krishna Lifestyle Technologies and Ashahi Fibres.
During RBI’s annual financial inspection of BoR, it was found that the bank had made incorrect disclosure regarding the shareholding pattern of the promoter group led by Pravin Tayal and others. Subsequently, Sebi’s investigation revealed that between June 2007 and December 2009, the promoters’ shareholding in the bank was shown to have dipped from 44.2% to 28.6%. However, as of end-2009, Tayals, along with their associates, actually controlled 55% in the bank.
The RBI reference to Sebi had mentioned that though, the promoters of BoR had reported certain reduction in their stake in BoR as mandated by the banking regulator’s guidelines of 2005, “it appeared that they had increased their stake in BoR simultaneously through surrogate acquisition.” Initial Sebi investigation has proved the ’surrogate’ means.
The RBI also said there were inter-firm transfers of funds to the accounts of other corporate bodies who had purchased stake in BoR. Following the trails provided by RBI, Sebi investigations found several cases of such inter-firm transfer of funds to help Tayals have control above their disclosed shareholding levels. It was also found, as referred by RBI, that most of the group and associated companies had the same contact details as that of various Tayal group companies, and also “some of the directors were common in the said other corporate bodies and Tayal Group Companies.”Quite shocking news
Quite shocking news. Never thought such banking troubles .
Stock market regulator Sebi has banned 100 entities related to the Bank of Rajasthan (BoR), including several members from the Tayal family, the promoters of the bank, from all stock market-related activities. Several of the entities banned are listed companies controlled by the Tayals directly or by their friends and associates.
Acting on a reference from the banking regulator Reserve Bank of India (RBI), Sebi conducted an investigation into the shareholding patterns in BoR since 2007. It was found that the entities which were banned were acting in connivance with the Tayals to corner BoR shares. This, in turn, helped the Tayals to disclose a shareholding pattern that conformed to the RBI rules relating to promoters’ holding in banks. However, the same shareholding pattern did not adhere to RBI’s main idea of separation of control and management.
The late-evening order, signed by Sebi’s wholetime director K M Abraham, banned entities including Pravin K Tayal, Navin K Tayal, Sanjay K Tayal and Saurabh P Tayal, the main promoters of the bank. Among the listed entities barred from the market were Jaybharat Textiles, Eskay K’n'IT, KSL & Industries, Krishna Lifestyle Technologies and Ashahi Fibres.
During RBI’s annual financial inspection of BoR, it was found that the bank had made incorrect disclosure regarding the shareholding pattern of the promoter group led by Pravin Tayal and others. Subsequently, Sebi’s investigation revealed that between June 2007 and December 2009, the promoters’ shareholding in the bank was shown to have dipped from 44.2% to 28.6%. However, as of end-2009, Tayals, along with their associates, actually controlled 55% in the bank.
The RBI reference to Sebi had mentioned that though, the promoters of BoR had reported certain reduction in their stake in BoR as mandated by the banking regulator’s guidelines of 2005, “it appeared that they had increased their stake in BoR simultaneously through surrogate acquisition.” Initial Sebi investigation has proved the ’surrogate’ means.
The RBI also said there were inter-firm transfers of funds to the accounts of other corporate bodies who had purchased stake in BoR. Following the trails provided by RBI, Sebi investigations found several cases of such inter-firm transfer of funds to help Tayals have control above their disclosed shareholding levels. It was also found, as referred by RBI, that most of the group and associated companies had the same contact details as that of various Tayal group companies, and also “some of the directors were common in the said other corporate bodies and Tayal Group Companies.”
British Banking Giant , Standard Chartered may launch IPO of its Indian Operations.
Indian Operations of Standard Chartered is already the 2nd largest contributer of Profits in Standard Chartered balance Sheet.
Hong Kong and Indian Operations together contribute more than 45% of the Bank’s earnings.
Standard Chartered is one of the largest Banks of the world. Its a British Bank with presence all over the world.
Financials of Indian Subsidiary:
Net Profit : Rs. 4900 Crores ( 2009 )
StanChart India witnessed a 10 per cent growth in its loan book in 2009 on the back of a healthy rise in consumer advances and loans to small companies.
India is the 2nd largest market for Standard Charterd in terms of earnings after Hong Kong, where the net profit went up to $1.062 billion in 2009 from $989 million in the previous year.
As part of ramping up its operations in the country, the bank plans to hire 2,000 more people here this year, Swaroop said. At present, the lender has total loan book of $9 billion (around Rs 41,400 crore) while the deposits are $11 billion (Rs 50,600 crore).
The proportion of current and savings account deposits to total deposits stood of StanChart India at 43 per cent, which grew by 25 per cent during the year, Swaroop said.
Total income of the bank, during the year went up to $1.813 billion as against $1.694 billion. At present, the bank has a capital adequacy ratio of 12.6 per cent.
During the year, the bank saw a slight rise in its loan impairments, which rose to $182 million from $157 million in the previous year. Net non-performing assets rose to 1.9 per cent during the year while gross NPAs stood at 2.9 per cent as of December 2009.
In terms of earnings after Hong Kong, where the net profit went up to $1.062 billion in 2009 from $989 million in the previous year.
As part of ramping up its operations in the country, the bank plans to hire 2,000 more people here this year, Swaroop said. At present, the lender has total loan book of $9 billion (around Rs 41,400 crore) while the deposits are $11 billion (Rs 50,600 crore).
The proportion of current and savings account deposits to total deposits stood of StanChart India at 43 per cent, which grew by 25 per cent during the year, Swaroop said.
Total income of the bank, during the year went up to $1.813 billion as against $1.694 billion. At present, the bank has a capital adequacy ratio of 12.6 per cent.
During the year, the bank saw a slight rise in its loan impairments, which rose to $182 million from $157 million in the previous year. Net non-performing assets rose to 1.9 per cent during the year while gross NPAs stood at 2.9 per cent as of December 2009.
Reliance Infratel had seen its earlier attempts to launch an IPO fail due to adverse market conditions. The company has again filed its Draft Prospectus with SEBI to launch IPO in Next Quarter. 10% stake will be divested and Reliance Communication will continue to hold 85% stake in the Telecom Infrastructure Arm.
Reliance Infratel IPO News:
2007 – Company raises Rs 1,400 crore by selling a 5 per cent stake to 7 investors — George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital
4 Feb 2008 – Reliance Infratel files DRHP with Sebi
15 May 2008 – Gets regulatory nod for IPO Offering
15 August 2008 – Reliance Infratel IPO cancelled
22 Sep 2009 – Anil Ambani announced plans for IPO
15 Jan 2010 – SEBI approves IPO
About the company:
2007 – 15,000 Towers
2010 – 55,000 Towers
Tenancy:
Current tenancy ratio – 2 (2010)
Potential tenancy ratio – 4-7 (2012)
Tenants: Etisalat DB, S Tel, Aircel, Tata Teleservices and MTS.
RCom’s own 3G and wireless broadband (Wimax) networks are expected to take up two slots more on each installation over the next 12 months.
In July 2009, Reliance Infratel signed a Rs 10,000 crore contract with Etisalat DB India to provide tower support in 15 circles.
Excerpts from Ambani’s speech:The De-merger & Consolidation Of OFCOur decision to demerge was guided by the need to keep ourselves asset-light, improve our return on equity and create value for our shareholders.In July 2007, we divested 5 per cent of Reliance Infratel for about Rs. 1,400 crore, generating capital gains of over Rs 1,200 crore for you, our shareowners. This deal attributed an equity value of about Rs. 27,000 crore to the company, amounting to Rs. 135 for every share of Reliance Communications.The recent transfer of optic fiber assets to our subsidiary, Reliance Infratel, has brought our entire passive infrastructure portfolio under one entity, enabling an efficient organizational structure from both customer acquisition and organizational cost perspectives. (Reliance Communications shareholders approved the demerger of the Optic Fiber Division of RCOM to Reliance Infratel in May).Growth, ExpectationsAt the time (2007), we had barely 15,000 towers in our portfolio. Today, we have three times that number at over 48,000 towers — and increasing. We have now added 35,000 towers over the last two years.At the time, we utilized barely 20,000 tenancy slots on our multi-tenancy towers. Today, the occupancy on our towers stands at around 75,000, a number that is set to more than double in the next three years, driven both by our own internal requirement and that of a large number of new and existing operators.In FY 2008, we had a revenue of Rs 1,500 crore. In FY 2009, that revenue has gone up by over 200 per cent to Rs 5,000 crore. In the same time period, the net profit has expanded by 400 per cent to touch Rs. 1,700 crore.We expect the demand for passive telecom infrastructure to more than double in the next couple of years.Business From New TelcosWe are benefiting from the infrastructure requirements of new entrants in the sector who are setting up their networks. We host the telecom electronics of a growing number of other operators on our towers, including Etisalat DB, S-Tel, Aircel, Tata Teleservices, MTS and others.In July this year, we signed a long-term, infrastructure sharing agreement with Etisalat DB valued at over Rs. 10,000 crore for a minimum period of 10 years. Under the agreement, we will provide a wide range of services, including passive infrastructure and transmission services. Last month, we concluded an agreement with another new operator S-Tel, to provide it telecom infrastructure in 6 operating circles.Reliance’s GSM Network Roll Out; Tapping Synergies Between GSM and CDMA NetworksDuring the previous year, we rolled out our nationwide GSM wireless services in a record time. The project was concluded in a span of barely 11 months. Both these networks operate on common, technology-independent infrastructure including telecom towers, network connectivity, long distance infrastructure, sales, distribution and retail network, back-end call center and BPO support. Apart from cutting the time-to-market of our GSM launch, this has also enabled us rationalize our capital expenditure significantly, making the new network profitable from Day One, in line with our existing wireless profitability.RCOM Subscriber AdditionsAs on March 31, 2009, we had 73 million subscribers on our wireless network, which has further increased to 85 million subscribers at present. We added 27 million subscribers during FY 2009, an increase of over 51 per cent. We are among the Top 2 wireless operators in the country.Reliance Mobile added about 23 million subscribers in the eight-month period from January to August, representing 21 per cent share of the net subscriber additions across the industry. Currently, we rank among the Top 5 telecom companies in the world by number of customers in a single country. By the end of this fiscal year, we look forward to acquiring our 100 millionth customer.Pre-paid User Base, MoUAs before, pre-paid subscribers contributed most of our growth. We added over 26.7 million prepaid subscribers in the last financial year, representing over 99.5 per cent of our wireless subscriber growth. Our subscribers consumed over 27,000 crore wireless minutes nationwide last year.No Significant Spend On Advertising?A consumer product launch in our country, even on a scale smaller than in telecom, is usually supported by advertising spends running into hundreds of crores of rupees. Our innovative and unconventional strategy used airtime minutes as a highly effective currency to launch our nationwide service without any significant spend on advertising and promotions.Coverage: Our network now covers over 24,000 towns and over 600,000 villages. This includes coverage of 95 per cent of all rail routes and highways in the country, traversing well over 270,000 kilometers.PCO Business: We have an undisputed leadership in the PCO segment, with over 2 million call offices across the country.Fixed Wireless Phones: We bring connectivity to the homes and offices of over 6 million subscribers across the country on Fixed Wireless Phones.On VAS: We are the largest provider of value added services in the country. Reliance Mobile World allows our wireless subscribers access to the most comprehensive range of VAS applications and over 200,000 content titles on their handsets. Related – Sachet VAS: RCOM’s Daily Pricing Strategy; Effect On ARPURural JV With Kribhco: This joint venture will aggressively market our telecom products and services, giving us greater distribution power in rural areas. The next big wave of subscriber growth in India will take place in the rural hinterland. Our pioneering initiative in reaching the rural subscriber in his own backyard will yield long-term value. More on the tie up on Medianama.On 3G & WiMAX: We are currently evaluating our participation in both the 3G and WiMAX auctions, which are scheduled to take place towards the end of this year.Other Services: We see significant opportunities across a range of businesses from mobile value added services to enterprise IT, from long distance voice and data services to Internet data centers, from consumer broadband and, home entertainment to telecom retailing and related businesses.
Excerpts from Ambani’s speech:
The De-merger & Consolidation Of OFC
Our decision to demerge was guided by the need to keep ourselves asset-light, improve our return on equity and create value for our shareholders.
In July 2007, we divested 5 per cent of Reliance Infratel for about Rs. 1,400 crore, generating capital gains of over Rs 1,200 crore for you, our shareowners. This deal attributed an equity value of about Rs. 27,000 crore to the company, amounting to Rs. 135 for every share of Reliance Communications.
The recent transfer of optic fiber assets to our subsidiary, Reliance Infratel, has brought our entire passive infrastructure portfolio under one entity, enabling an efficient organizational structure from both customer acquisition and organizational cost perspectives. (Reliance Communications shareholders approved the demerger of the Optic Fiber Division of RCOM to Reliance Infratel in May).
Growth, Expectations
At the time (2007), we had barely 15,000 towers in our portfolio. Today, we have three times that number at over 48,000 towers — and increasing. We have now added 35,000 towers over the last two years.
At the time, we utilized barely 20,000 tenancy slots on our multi-tenancy towers. Today, the occupancy on our towers stands at around 75,000, a number that is set to more than double in the next three years, driven both by our own internal requirement and that of a large number of new and existing operators.
In FY 2008, we had a revenue of Rs 1,500 crore. In FY 2009, that revenue has gone up by over 200 per cent to Rs 5,000 crore. In the same time period, the net profit has expanded by 400 per cent to touch Rs. 1,700 crore.
We expect the demand for passive telecom infrastructure to more than double in the next couple of years.
Business From New Telcos
We are benefiting from the infrastructure requirements of new entrants in the sector who are setting up their networks. We host the telecom electronics of a growing number of other operators on our towers, including Etisalat DB, S-Tel, Aircel, Tata Teleservices, MTS and others.
In July this year, we signed a long-term, infrastructure sharing agreement with Etisalat DB valued at over Rs. 10,000 crore for a minimum period of 10 years. Under the agreement, we will provide a wide range of services, including passive infrastructure and transmission services. Last month, we concluded an agreement with another new operator S-Tel, to provide it telecom infrastructure in 6 operating circles.
Reliance’s GSM Network Roll Out; Tapping Synergies Between GSM and CDMA Networks
During the previous year, we rolled out our nationwide GSM wireless services in a record time. The project was concluded in a span of barely 11 months. Both these networks operate on common, technology-independent infrastructure including telecom towers, network connectivity, long distance infrastructure, sales, distribution and retail network, back-end call center and BPO support. Apart from cutting the time-to-market of our GSM launch, this has also enabled us rationalize our capital expenditure significantly, making the new network profitable from Day One, in line with our existing wireless profitability.
RCOM Subscriber Additions
As on March 31, 2009, we had 73 million subscribers on our wireless network, which has further increased to 85 million subscribers at present. We added 27 million subscribers during FY 2009, an increase of over 51 per cent. We are among the Top 2 wireless operators in the country.
Reliance Mobile added about 23 million subscribers in the eight-month period from January to August, representing 21 per cent share of the net subscriber additions across the industry. Currently, we rank among the Top 5 telecom companies in the world by number of customers in a single country. By the end of this fiscal year, we look forward to acquiring our 100 millionth customer.
Pre-paid User Base, MoU
As before, pre-paid subscribers contributed most of our growth. We added over 26.7 million prepaid subscribers in the last financial year, representing over 99.5 per cent of our wireless subscriber growth. Our subscribers consumed over 27,000 crore wireless minutes nationwide last year.
No Significant Spend On Advertising?
A consumer product launch in our country, even on a scale smaller than in telecom, is usually supported by advertising spends running into hundreds of crores of rupees. Our innovative and unconventional strategy used airtime minutes as a highly effective currency to launch our nationwide service without any significant spend on advertising and promotions.
Coverage:
Our network now covers over 24,000 towns and over 600,000 villages. This includes coverage of 95 per cent of all rail routes and highways in the country, traversing well over 270,000 kilometers.
Reliance Infratel had seen its earlier attempts to launch an IPO fail due to adverse market conditions. The company has again filed its Draft Prospectus with SEBI to launch IPO in Next Quarter. 10% stake will be divested and Reliance Communication will continue to hold 85% stake in the Telecom Infrastructure Arm.
Reliance Infratel IPO News:
2007 – Company raises Rs 1,400 crore by selling a 5 per cent stake to 7 investors — George Soros, HSBC, Fortress Capital, New Silk, Galleon, DA Capital and GLG Capital
4 Feb 2008 – Reliance Infratel files DRHP with Sebi
15 May 2008 – Gets regulatory nod for IPO Offering
15 August 2008 – Reliance Infratel IPO cancelled
22 Sep 2009 – Anil Ambani announced plans for IPO
15 Jan 2010 – SEBI approves IPO
About the company:
2007 – 15,000 Towers
2010 – 55,000 Towers
Tenancy:
Current tenancy ratio – 2 (2010)
Potential tenancy ratio – 4-7 (2012)
Tenants:
Etisalat DB, S Tel, Aircel, Tata Teleservices and MTS.
RCom’s own 3G and wireless broadband (Wimax) networks are expected to take up two slots more on each installation over the next 12 months.
In July 2009, Reliance Infratel signed a Rs 10,000 crore contract with Etisalat DB India to provide tower support in 15 circles.
Excerpts from Ambani’s speech:
The De-merger & Consolidation Of OFC
Our decision to demerge was guided by the need to keep ourselves asset-light, improve our return on equity and create value for our shareholders.
In July 2007, we divested 5 per cent of Reliance Infratel for about Rs. 1,400 crore, generating capital gains of over Rs 1,200 crore for you, our shareowners. This deal attributed an equity value of about Rs. 27,000 crore to the company, amounting to Rs. 135 for every share of Reliance Communications.
The recent transfer of optic fiber assets to our subsidiary, Reliance Infratel, has brought our entire passive infrastructure portfolio under one entity, enabling an efficient organizational structure from both customer acquisition and organizational cost perspectives. (Reliance Communications shareholders approved the demerger of the Optic Fiber Division of RCOM to Reliance Infratel in May).
Growth, Expectations
At the time (2007), we had barely 15,000 towers in our portfolio. Today, we have three times that number at over 48,000 towers — and increasing. We have now added 35,000 towers over the last two years.
At the time, we utilized barely 20,000 tenancy slots on our multi-tenancy towers. Today, the occupancy on our towers stands at around 75,000, a number that is set to more than double in the next three years, driven both by our own internal requirement and that of a large number of new and existing operators.
In FY 2008, we had a revenue of Rs 1,500 crore. In FY 2009, that revenue has gone up by over 200 per cent to Rs 5,000 crore. In the same time period, the net profit has expanded by 400 per cent to touch Rs. 1,700 crore.
We expect the demand for passive telecom infrastructure to more than double in the next couple of years.
Business From New Telcos
We are benefiting from the infrastructure requirements of new entrants in the sector who are setting up their networks. We host the telecom electronics of a growing number of other operators on our towers, including Etisalat DB, S-Tel, Aircel, Tata Teleservices, MTS and others.
In July this year, we signed a long-term, infrastructure sharing agreement with Etisalat DB valued at over Rs. 10,000 crore for a minimum period of 10 years. Under the agreement, we will provide a wide range of services, including passive infrastructure and transmission services. Last month, we concluded an agreement with another new operator S-Tel, to provide it telecom infrastructure in 6 operating circles.
Reliance GSM and CDMA Network Synergies:
During the previous year, we rolled out our nationwide GSM wireless services in a record time. The project was concluded in a span of barely 11 months. Both these networks operate on common, technology-independent infrastructure including telecom towers, network connectivity, long distance infrastructure, sales, distribution and retail network, back-end call center and BPO support. Apart from cutting the time-to-market of our GSM launch, this has also enabled us rationalize our capital expenditure significantly, making the new network profitable from Day One, in line with our existing wireless profitability.
Reliance Communication Subscriber Additions
As on March 31, 2009, we had 73 million subscribers on our wireless network, which has further increased to 85 million subscribers at present. We added 27 million subscribers during FY 2009, an increase of over 51 per cent. We are among the Top 2 wireless operators in the country.
Reliance Mobile added about 23 million subscribers in the eight-month period from January to August, representing 21 per cent share of the net subscriber additions across the industry. Currently, we rank among the Top 5 telecom companies in the world by number of customers in a single country. By the end of this fiscal year, we look forward to acquiring our 100 millionth customer.
Pre-paid User Base, MoU
As before, pre-paid subscribers contributed most of our growth. We added over 26.7 million prepaid subscribers in the last financial year, representing over 99.5 per cent of our wireless subscriber growth. Our subscribers consumed over 27,000 crore wireless minutes nationwide last year.
Advertising
A consumer product launch in our country, even on a scale smaller than in telecom, is usually supported by advertising spends running into hundreds of crores of rupees. Our innovative and unconventional strategy used airtime minutes as a highly effective currency to launch our nationwide service without any significant spend on advertising and promotions.
Coverage:
Our network now covers over 24,000 towns and over 600,000 villages. This includes coverage of 95 per cent of all rail routes and highways in the country, traversing well over 270,000 kilometers.
Reliance Infratel Financials:
Anil Ambani ’s talk on Financials of Reliance Infratele IPO
Out of the total proceeds from the IPO, Reliance Infratel has said, it would utilise Rs4,000 crore towards repayment of loan to a promoter entity Reliance Communication Infrastructure Ltd (RCIL), while the rest would be used for issue expenses and general corporate purposes.
Besides RCIL, the company has also taken unsecured loans from another promoter entity Reliance Communications (RCOM), as also from commercial banks and third-parties, for its business expansion needs.
However, the company does not envisage having any surplus distributable earnings anytime soon and therefore does not expect to pay any dividend in the foreseeable future.
“We will not be in position to pay dividends to our shareholders in the foreseeable future….our business is capital intensive and we plan to make substantial capital expenditures to complete our current expansion plans,” the company said in the draft prospectus.
The company said that it has very recently commenced operations as an independent entity pursuant to a demerger scheme, and its free reserves are only equal to the fair value of the assets that have been acquired under the scheme.
Therefore, “We do not expect having distributable funds or paying any dividends in the foreseeable future. Additionally, we have taken unsecured loans from our Promoters, which may be recalled at any time by the lenders.
“We may be unable to pay dividends in the near or medium term, and our future dividend policy will depend on our capital requirements and financing arrangements for further expansion, financial condition and results of operations,” it added.
“We intend to use some of the proceeds from the Issue to repay a loan from one of our Promoters, RCIL,” the company said, adding that the total outstanding as on 15 September was Rs4,931.5 crore repayable by 31 March, 2012.
“The purposes of the loan were to fund capital expenditures towards the roll-out of towers and passive infrastructure and to refinance high cost debt that had been drawn to fund capital expenditure for towers and passive infrastructure.
“While the loan from RCIL had a lower rate of interest, lower costs and fewer covenants than what was otherwise commercially available, the portion of the proceeds that will be used for repayment will not be available for other purposes, such as building additional telecommunication towers and passive infrastructure, marketing the Company to potential customers or investing in new equipment and personnel.“
The company is planning to sell 15.6 crore equity shares with face value of Rs 10 each, to be sold at a premium to be decided later.
This will represent 10.05 per cent of the company’s total equity capital and reduce the promoters’ holding to about 85 per cent, as the company has already divested five per cent equity to a clutch of institutional investors in the past.
Reliance Infratel has been availing short-term and long-term loans from its promoters, RCOM and RCIL, from time to time, primarily to fund its expansion plans.
At the end of last fiscal, total unsecured loans outstanding were Rs15161.3 crore, out of which unsecured loans outstanding from promoters (RCOM and RCIL) were Rs 9,111.4 crore and remaining from the commercial banks and third parties.
As of 15 September, 2009, total unsecured loans outstanding from promoters were Rs 10,753.9 crore — including Rs 5,822.32 crore due to RCOM and Rs4931.6 crore to RCIL.
“We intend to use part of the net proceeds amounting to Rs4,000 crore for repayment of the unsecured loan availed from RCIL,“ the company said, adding that RCIL has the right to charge interest from 1 October, or from the date the company gets listed on a recognized stock exchange, whichever is earlier.
Part of this loan, amounting to Rs 603.4 crore is repayable at the end of 31 March, 2010 and the balance of Rs4,328.2 crore by 31 March, 2012
The company, which is a part of the Shishir Bajaj Group of companies, produces Bajaj Almond Drops, a premium brand hair oil. It also markets hair oil under brand names Brahmi Amla, Amla Shikakai and Jasmine Hair Oil.
Besides hair oils, it also produces oral care product under the brand name of Bajaj Black Tooth Powder.
The company has filed the Draft Red Herring Prospectus with the capital markets regulator the Securities and Exchange Board of India for an IPO of 45 lakh equity shares of Rs 5 each, at a price range to be determined, it said.
Kotak Mahindra Capital Company is the sole book running lead manager to the issue.
The public issue that will be through a 100 per cent book building process would constitute 15.3 per cent of the post- issue paid-up equity capital of the company.
The Shishir Bajaj Group operates businesses in the fields of consumer goods, sugar, power generation and infrastructure development industries throughout India.
Bajaj Corp Ltd said it has filed regulatory application for an initial public offering of 4.5 million shares.
The price range of the IPO was not yet decided, it said on Wednesday. The offer would constitute 15.3 percent of its post-issue paid up equity capital and the IPO proceeds would be used for product expansion and acquisitions, the firm said in a statement.
Kotak Mahindra Capital Company Ltd is the sole book running lead manager to the issue. Bajaj Corp sells the Bajaj Almond Drops, Brahmi Amla and Jasmine Hair Oil brands.
It also produces oral care products under the brand name Bajaj Black Tooth Powder.
