Indian Stock Market

Lavasa Corp IPO is coming soon. Its a subsidiary of HCC.

Read our previous post on Lavasa corp IPO

SKS Microfinance IPO is opening today for subscription. Its a very unique IPO as market has not seen such company tapping investors.

Yes. SKS Micor finance is in the business of Microfinance as the name suggests.

About the issue:

SKS Microfinance’s IPO of 16.8 million equity shares would open on July 28.

Price band : Rs 850-985 per share

About the company:

SKS Microfinance is the largest microfinance company in India with loan portfolio of ~US$1bn, 2,000+ branches spread across 19 states and 6.8 million members. Its strengths include pan-India presence, scalable operating model, diversified product revenues and access to various sources of capital.

Lending primarily to poor women, the business model involves village centered group lending, thereby ensuring a check on asset quality. The huge demand-supply credit gap and inability of banks to penetrate into unbanked areas have driven the growth of microfinance industry. While valuations appear expensive, the scalable business model, market leadership position and high earnings growth provide comfort. Recommend Subscribe,” the report said.

On the valuations front, the report added that the company is “valued at a FY10 P/B of 3.6x at the lower price band and 4.2x on the upper price band post dilution. This is significantly higher as compared to average P/B for NBFCs at 2-2.5x, PSU banks (1-2x) and private banks (2.5-4x). International MFI companies have however traded at higher multiples due to their longer operating history and higher returns ratio. RoE for SKSMF at 21.7% (end FY10) is largely in line with domestic NBFCs and banks.

Objects of the IPO:

It plans to utilise the proceeds to augment capital base to meet future capital requirements and to achieve the benefits of listing on the stock exchanges. The issue closes Monday.

It plans to double its headcount to 42,000 by the end of the current fiscal as it expands capacity.

“We will expand our branch network from the current 2,000. We have been doubling our headcount for the past two years. Going by previous records we can be hopeful of doubling the headcount in the current fiscal too,” SKS Microfinance chief executive and managing director Suresh Gurumani said here today. At the end of the last fiscal, the company had 21,000 employees.

Shareholding:

Venture capital firm Sequoia is the largest shareholder in SKS, while other leading stakeholders include Kismat Capital, Mutual Benefit Trust and Sandstone, amongst others. Post-issue, holding of Sequoia will come down to around 15.1 per cent from the current 22.3 per cent.

Telecom sector IPO after years. Im excited so do you.

Vodafone Essar IPO might go live soon. Essar group is trying to sell stake in vodafone through IPO.

Essar is British firm Vodafone’s partner in India’s No. 3 mobile firm, Vodafone Essar, in which it holds a 33 per cent stake. The talks are preliminary, and Essar has not yet appointed banks to handle the process, said the sources, who declined to be named as they were not authorised to speak with the media. Essar and Vodafone declined to comment.

In 2007, Vodafone bought a controlling stake in Hutchison Whampoa Ltd’s mobile business in India, in which Essar had been a partner. The deal gave Essar the option to sell its entire 33 per cent stake in the telecom venture to Vodafone for $5 billion between the third and fourth years after the deal’s completion.

Alternatively, Essar could sell shares worth between $1 billion and $5 billion in the company to Vodafone at an independent valuation. The option for the sale opened in May and runs for 12 months. News of the potential listing of Essar’s stake in the venture was earlier reported by Bloomberg. Vodafone has yet to decide on its response and is waiting for Essar to make a proposal, Bloomberg said, citing a person familiar with the matter.

In April, Essar, controlled by billionaire brothers Shashi and Ravi Ruia, raised 1.27 billion pounds through a London IPO of its energy and power businesses. In February, Essar sold its telecoms tower unit to American Tower Corp for about $432 million, and in November, it agreed to buy a majority stake in Dhabi Group’s telecommunication businesses in Uganda and Congo.

Hindustan Media Ventures IPO

Stake dilution through IPO and IPO Dates:

HT Media Limited will be diluting up to 23 per cent of its holding in its subsidiary Hindustan Media Ventures (HMVL) through an IPO scheduled to hit the capital market on July 5.

Price Bank of IPO:

NMVL today fixed the price-band for its IPO at between Rs 162-175 per share and plans to raise Rs 270-crore through the issue.

About Hindusthan Media Ventures:

HMVL publishes the Hindi-language Hindustan newspaper.

“The dilution by HTML would be between 21 and 23 per cent depending on the exact price at which the sale happens,” a senior official from Edelweiss Capital, one of the book running lead managers, said.

Post IPO Scene:

Post-IPO, HTML will hold the rest of the equity, he added.

The IPO, opening on July 5 will close on July 7 and the company plans to utilise Rs 135-crore or half of the funds raised for prepayment of loans, Rs 66-crore for setting-up new units and another Rs 55-crore for upgrades, it said in its red herring prospectus.

Company Profit Position:

After three years of being in the red, the company registered a net profit of around Rs 45-crore in 2009-10, which is slated to move up as advertising revenues increase with an upward movement in the GDP.

CEO Talk:

HMVL’s Chief Executive Officer, Amit Chopra, said, “it is not a question of being in the red or black. There is a good future considering the geographies we are present in and the advantages accruing from association with HTML in areas of content, supply-chain, circulation and ad sales.”

How HMVL Came:

HMVL was carved out of HTML as a separate company four months ago.

HTML publishes leading English dailies like Hindustan Times and Mint, while Hindustan is a market leader in Jharkhand and Bihar, second in the National Capital Region and is picking up in the lucrative Uttar Pradesh and Uttarakhand markets.

Mobile handset maker Micromax is launching an IPO soon.

Here is the news from VCCIRCLE

Micromax Informatics Ltd, the Gurgaon based mobile handset company, is gearing up for a debut on the bourses. The largest domestic mobile handset player, which recently raised private equity funding from TA Associates, is slated to hit the capital markets in the coming months and has already engaged bankers for the issue, said sources.

VCCircle has learnt that Citigroup Global Markets, Edelweiss and JP Morgan may be the lead bankers to the public offering. While the discussions on valuations and structuring are still in the preliminary stage, sources tell VCCircle that Micromax could be looking at a valuation of around Rs 3,000-3,500 crore. Micromax may be eyeing a mop-up of around Rs 600-800 crore as it looks to expand its presence throughout the emerging markets.

Vikas Jain, business director at Micromax, declined to comment on the development. “As a company policy, we would be unable to comment on any speculative event for Micromax. Should we be ready for any announcement, shall get in touch,” he said in an emailed response. An email sent to Citi’s spokesperson to confirm on the Micromax mandate did not elicit any response till the time of writing this story.

Micromax, which started as a telecom equipment distributor in 2000, has registered a phenomenal growth in the burgeoning domestic mobile market. The company entered the mobile handset market in April 2008 and its current market share stands at 4.1% market share by revenue.

In a total of domestic mobile handset manufacturers standing at 14% last year, Micromax garnered the largest share with 4.1% followed by Spice and Karbonn had a share of 3.9% and 3% in FY10, said the V&D100 Indian Telecom Survey conducted by CyberMedia Telecom journal Voice & Data. Mobile phones sale stood at 108 million across the country in 2009-10, amounting to Rs 27,000 crore in sales revenues up from Rs 25,910 crore in the previous year.

Apparent from the increasing market share, the company’s numbers in FY10 stood at around Rs 1,600 crore in topline and Rs 150 crore in PAT (profit-after-tax). The firm has been able to quickly expand its product offering with its handsets now being sold through more than 45,000 retail points in 120 cities across India.

It has become the third largest handset provider in India, as measured by volume, said Micromax in a release, just below Nokia and Samsung in that order. Earlier this year, US-based PE firm TA Associates infused $45 million (Rs 204 crore) in Micromax valuing the company a little above Rs 1,000 crore. The IPO would result in a liquidity event for TA Associates, which has also earlier invested in Idea Cellular.

“The company has registered a phenomenal growth and may be looking to raise this kind of money to open its own production plant in India”, said an analyst with a Mumbai based broking firm who did not wish to be named. It has till now been assembling and branding the product
procured from China. It also plans to open an app store and roll out the product internationally. Vikas Jain, business director, Micromax recently told Telecomyatra, “We are looking at three areas for international operations– SAARC, Middle East, Africa and Latin America.”

The Indian wireless market is one of the fastest growing in the world with 10 to 15 million new mobile subscribers per month, says research by Macquarie Research and Grant Thornton. The number of subscribers has grown from approximately 100 million in 2006, to more than 400
million today and is expected to grow to over 800 million over the next three years.

Micromax offers entry level handsets from Rs 1,750 to high-end models up to Rs 16,000. But most of its mobiles are sold in the Rs 2,500-5,000 segment.

Domestic Mobile Handset Market

Recent times have seen a flux of domestic mobile handset makers as the consumer acceptance of these brands have increased. Micromax leads this pack with other players including companies like Videocon, Karbonn, Maxx, Intex, Zen and Lava. Other players include Bling Telecom and MVL Telecom.

Keeping up with the fast growing domestic handset market in India, there are other domestic mobile handset makers who are looking to raise money to ramp up their expansion plans. Lemon Mobiles, a mobile brand promoted by Fast Track Communications, is also looking to raise capital to fund a $100 million (over Rs 460 crore) investment in India over the next three years. The company claims that it is already amongst the top 10 handset manufacturers in the country and aims to be amongst the top five within the next two years.

Others like Spice Mobile have earlier said that it will merge with parent company Spice Televentures as part of a plan to consolidate the group’s telecom business and raise money by selling treasury stock in the market to raise Rs 300 crore

Food IPO again. Should be a Blockbuster according to me.

IPO Details:

Speciality Restaurant is looking to sell 30% stake through a public issue to raise about Rs 200 crore.
The privately-held firm promoted by Anjan Chatterjee is in talks with Kotak Bank to facilitate the issue and could see SAIF Partners exit completely during the public offer. SAIF Partners had invested Rs 90 crore in December 2007 to buy 20% stake in the food services firm.

IPO Fund Plans:

The company plans to use the funds to increase the number of restaurants to 100 by the end of 2011. Established in 1991, the company currently has 74 restaurants under various brands including Sigree, Machaan and Mostly Kababs, besides the flagship chains Mainland China and Oh! Calcutta.

The firm also plans to use part of the funds to step up its presence in the international market and open restaurants in Dubai, Sri Lanka and London. It currently runs a Mainland China branch in Bangladesh. Eating out has become a big business in the country over the past few years.

Parabolic Drugs is launching a Rs.200 crore IPO.

Parabolic IPO Date , Price:

Date: June 14 2010 – June 16 2010
Price Band: Rs 75-85 per share
The issue comprises an offer for sale of 20,25,702 equity shares by BTS India Private Equity Fund and Alden Global (Mauritius).

About Parabolic Drugs IPO:

Parabolic drugs is a Chandigarh based contract manufacturer of active pharmaceutical ingredients (APIs) and API intermediate company in the SME segment, Parabolic Drugs (PDL) intends is planning to come out with an Initial Public Offer (IPO) for Rs 200 crore. The company will use the raised funds for capacity expansion of existing as well as for the new facility. PDL will use its IPO earning also in reducing its debt.

Management Talk:

Pranav Gupta, Managing Director, PDL said, “We believe that the scope of outsourcing will increase day by day and we are trying to accomplish as much as possible. In line with our growth plans, we have filed a draft red herring prospectus (DRHP) and received observation report from Securities and Exchange Board of India’s (SEBI) and targeting to launch IPO in a month’s time. Through the IPO we will be raising Rs 200 crore which will be utilised for our existing as well as for upcoming facilities. Also we have Rs 38 crore debts which will be settled through IPO proceeds.”

Manafucturing facilities:

PDL has two full-fledged manufacturing facilities at Derabassi, Punjab and Panchkula, Haryana and obtained WHO GMP certification and US FDA approval respectively.

R&D center:

The company is also setting up a new pilot R&D centre at Barwala, Haryana for custom synthesis research on a larger scale and targeting to commission the facility soon. Besides, it is also setting up a new manufacturing facility as per US FDA guidelines at Chachrauli, Haryana which will be operational by November 2011.

Speaking on the funds break up Vineet Gupta, Director, PDL shares the details, “Currently, we have two facilities one each at Derabassi and Panchkula. Besides, we are also setting up two more facilities at Barwala and Chachrauli. Through the IPO we plan to expand and scale up these facilities further. Also, we have planned to set up one more R&D centre at Panchkula but this completely depends on the IPO proceeds and we are targeting to commission this facility by 2012.”

Expansion plans:

At Barwala, PDL will be doubling its existing capacity of 200-250 kilo lab with an investment of Rs 50 crore for phase III. Likewise, it will be investing Rs 16 crore for phase II expansion of Chachrauli facility and Rs 47 crore for the Panchkula site. The company had taken term loans to fund previous expansion plans and will be repaying debts of Rs 38 crore from a part of the IPO proceeds. The company has products in antibiotics and is further diversifying into the lifestyle disease segments. Presently, its product portfolio holds 42 APIs and seven API intermediates. In a span of two years, PDL filed 15 dossiers and few more are in the process. Overall, it has manpower strength of 968 people of which 81 scientists and 24 PhDs. The company is keen on hiring more people.

International Business:

PDL is present in over 45 countries and its export business contributes nearly 32 percent of total turnover. During half year of 2009-10, teh company reported a turnover of Rs 230 crore. With a CAGR of 40 percent the company has grown rapidly during the last five years. Commenting on the international business potential, Vineet Gupta said, “Turkey and Middle East are the major markets for us especially for antibiotics. We are continuously eyeing US, Japan and the European market for further growth.”

MCX IPO was supposed to be finished long back 2 years back. But market conditions forced them not to hit the markets. And even regulations spoiled its plans.

But this time Financial Technologies is making all moves to hit the market. MCX – Multi Commodities Exchange has got the approval of FMC to launch the IPO. It has obeyed with its terms of offloading 10% stake to a govt institution.
MCX proposes to offer 10% stake in the bourse to government companies.The sale will take place through the bidding process with a total of 81.6 lakh being put on block at a floor price of Rs 563 per share or for Rs 459 crore.At the floor price, MCX is valued at Rs 4,590 crore or a little over $1 billion at current exchange rates. The shares will be locked in for three years from the date of the transaction

Stake to Public companies:

MCX proposes to offer 10% stake in the bourse to government companies. The sale will take place through the bidding process with a total of 81.6 lakh being put on block at a floor price of Rs 563 per share or for Rs 459 crore. At the floor price, MCX is valued at Rs 4,590 crore or a little over $1 billion at current exchange rates. The shares will be locked in for three years from the date of the transaction.

Shareholders of MCX:

FT (31%), other shareholders of MCX include SBI and its associates (9%), Nabard (3%), Corporation Bank (3.5%), Fidelity (5%), NYSE (5%), Merrill Lynch (5%) and Passport Capital.

Will it really hit the Market this time:

This question still comes as an MCX spokesperson said last week that the exchange had neither filed a draft red herring prospectus with Sebi nor had arrived at any timeline for going public.

Punjab & Sind Bank IPO

This is going to be a Rs.500 crore IPO from Banking side. Banking IPOs have been hitting market consistently either from government or private sector.

Punjab & Sind Bank plans to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India next week

Government had previously accepted the restructuring plans . Wait for more information . come back again

Kabirdass Motor IPO is a different kind of IPO. It an Auto company but it operates in electric motors.

About Kabirdas Motors IPO:

KMCL was formed in 2006 to develop and commercialize zero emission vehicles (“ZEV”) in the name of ‘XITE’. Kabirdass is a group company of Best Cast IT Ltd (Best Cast), which is a leading aluminum casting and machined automobile parts manufacturing company. The Company which has been selling XITE-bikes and scooters for over a year now maps its customer profile less than 18 years of age or above 40 years of age. The company is also developing new models of electric scooters suiting the requirements of different type of customers.

About the Listing Plans of the company:

]KMCL is looking to use the proceeds of the issue towards the expansion of its existing facilities and for the manufacturing of spare parts of electric scooters. This would help the Company to reduce the cost and realise better margins on the product. Additional assembly lines would also be set up increasing the installed capacity from 40, 500 units to 2,00,000 units after the expansion

Sebi Approval:

Kabirdass Motor Company Ltd., has secured Sebi approval for its upcoming public issue. The public float is expected to hit the market within next 1-2 months and the company is hoping to raise up to Rs 67 crores from the process.

Lead Managers for the issue:

Keynote Corporate Services Ltd. and Canara Bank are the BRLMs to the issue while Cameo Corporate Services is the registrar to the issue.

Cantabil Retail India IPO – Details

Cantabil Retail India is an apparel manufacturer and retailer.

It has received Securities and Exchange Board of India nod for the company’s forthcoming initial public offering.

The company had filed the draft red herring prospectus for the IPO in the month of September 2009.

Cantabil Retail intends to raise upto Rs 105 crore from the IPO, which may hit the market in a month or two, a company statement said here on Tuesday.

Cantabil currently has over 380 exclusive outlets across the country under two brands – Cantabil and La Fanso.

BPTP IPO is the next one from Real Estate sector. Real estate companies have entered capital markets after DLF tapped the markets . BPTP is a delhi based real estate company trying to raise funds to the tune of Rs.1500 crores

About BPTP IPO:

BPTP focuses on residential projects in Gurgaon, Faridabad and Noida, all in the vicinity of New Delhi. The company had 17 ongoing projects with total built up area of 39 million sq ft, as at December 2009, according to its draft prospectus.
The company plans to use the proceeds from the issue to fund construction on existing and future projects and to repay debt.
JPMorgan India and IDFC Capital are the book running lead managers to the BPTP issue.

Real estate IPO:

Since mid-2009, about 15 developers have lined up plans for initial public offers to raise about USD 6 billion on the back of reviving property demand.

These include a USD 650 million issue by Lodha Developers, a USD 770 million offering by Emaar MGF, an Indian joint venture of Dubai’s Emaar Properties, and a USD 650 million IPO by Sahara Prime City.
However, the Mumbai stock index has dropped 2.7% this year after an 81% jump in 2009 and a crowded calendar of public offers are threatening to derail fundraising plans by the property firms.
Godrej Properties, DB Realty and Nitesh Estates, the three developers that launched IPOs this year, saw poor retail support although the issues were oversubscribed on demand from institutions.

Fatpipe Networks IPO opens on June 7 2010.

About Fatpipe Networks IPO:

Fatpipe Networks India has fixed a price band for its public issue at Rs 82-85 a share. The issue will open for subscription on June 7 and will close on June 9, 2010. The company is planning to raise Rs 49 crore through this issue.
About Fat Pipe:

It provides global corporations and government offices with technology that increases the security and reliability of Wide Area Networks, corporate extranets, Virtual Private Networks and all last-mile Internet connections, including wireless connectivity.
The company holds patents on a technology called ‘Router-Clustering’, which enables customers to obtain highly redundant and fast Internet/WAN access

Promoters:

Promoters and their group hold 37.29% stake in the company. Major shareholders like Sanchaita Datta, vSpring Management and Ragula Bhaskar have over 16% stake each in the company.
Issue proceeds will be used for expanding the product line with enhanced research and development activities, specifically for development of new product-lines; for establishing 16 new Marketing Offices across the globe including additional offices in the USA; for strategic acquisition of business/ company and for margin money for working capital requirement. The company estimated cost for above objects at Rs 6.76 crore, Rs 10.08 crore, Rs 15 crore and Rs 7.2 crore, respectively.

IPO Lead Managers:

The book running lead manager to the issue is Keynote Corporate Services and Karvy Computershare Private Limited is the registrar.

IPO Allotment status:

Allotment status will be put up in karvy website after the end of IPO.

Satluj Jal Vidyut Nigam ( SJVN ) IPO has been fully subscribed and IPO Allotment status will be known in a few days. Retail investors who had applied for this issue will get full allotment.

SJVN is a hydro power generator . SJVN is a joint venture between the Government of India and the state government of Himachal Pradesh, formed to develop and operate the 1,500MW Nathpa Jhakri Hydro Power Station (NJHPS).

Price of IPO is yet to be decided.  Mostly the lower band would be used. Allotment would be done in few days too.

Allocation details when available will be put up here.

About SJVN IPO:

SJVN is joint venture between the central government and the Himachal Pradesh (HP) state government. The Centre holds 74.5% stake and the HP state government holds the remaining 25.5%. The central government’s stake after the divestment will decline to 64.47%.

SJVN reported net profit of Rs 775.37 crore on net sales of Rs 1423.10 crore for nine months period ended December 2009

Jaypee Infratech is a subsidiary of Jaiprakash Associates Ltd.  IPO Allotment status of Jaypee infra will be posted here as soon as its available.

IPO has received decent subscription . Allotment for this jaypee group ipo will be easy for retail investors. CHeck allocation details here later.

About Jaypee infratech IPO:

Price Band: Rs. 102-117

Amount raised: Rs 1,650 crores

IPO funds : Nearly 90% of the proceeds will be utilised to fund the construction of Yamuna Expressway Project linking Greater Noida with Agra. The balance will be used for general corporate purpose and meeting the issue expenses

Jaypee Infra is owned by Jaiprakash Associates Ltd

The company offers a 5% discount to retail investors whose bid amount doesn’t exceed Rs 1 lakh. The issue represents nearly 15% of the post-IPO equity capital of the company and the promoter’s stake in the company will decline to around 85% after the issue.