Daily updates on Initial Public Offers (IPO)

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Power Grid FPO subscribed 3.61 times on day two, 10-Nov-10

The follow-on public offer (FPO) of the state-run transmission firm Power Grid Corporation of India was subscribed 3.61 times by on day two today, 10 November 2010.

The FPO garnered bids for 303.71 crore shares against 84.17 crore on offer.

The FPO is priced in the Rs 85-90 per share band. Retail investors and employees will get a 5% discount from the final price discovered through the book building route.

The last day of bidding for qualified institutional buyers is 11 November 2010 while for non-institutional, retail and employees is 12 November 2010.


The issue comprises a fresh issue of 42.08 crore shares and an offer for sale of equal number of shares by the President of India acting through the Ministry of Power, Government of India, which is 20% offer in total. The ongoing issue constitutes 18.2% of the post issue paid-up capital of Power Grid Corporation of India. Post FPO, the government's holding in the company will decline to 69.40% from the present 86.36%.

The Power Grid FPO is part of the government's plan to raise Rs 40,000 crore in the fiscal year ending March 2011 by disinvesting part stakes in state-run firms.

Power Grid will use the funds raised from the FPO for part funding capital expenditure (capex) plan.

The company's shares are listed on the BSE and the NSE. It settled at Rs 102 on Wednesday, 10 November 2010 on the BSE.

 

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Re: Power Grid FPO subscribed 9.72 times on day three, 11-Nov-10

Follow-on public offer (FPO) of India's biggest inter-state transmission company Power Grid Corp has received overwhelming response from qualified institutional buyers (QIBs). The issue has subscribed 9.72 times so far, as per NSE website.

The reserved portion of QIBs, which closed today, has subscribed 18.52 times. The issue has received bids for 818.4 crore equity shares as against an issue size of 84,17,68,246 shares.

The FPO got subscribed 9.72 times on QIB support.

Non institutional investors and retail investors' portion subscribed 1.63 times & 0.72 times, respectively.

The price band is set at Rs 85-90 per share. The issue will close for subscription on November 12 for non-institutional and retail investors.

The FPO proceeds will be used for 13-14 transmission projects costing Rs 22,600 crore.

 

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RPP Infra Projects IPO opens on 18-Nov'10

RPP Infra Projects is a construction company engaged in the business of infrastructure development such as highways, roads and bridges.

The company proposes to deploy the net proceeds of the issue for investment in special purpose vehicle (SPVs) for built-operate-transfer (BOT) projects, meeting capital expenditure requirement, funding margin requirement for working capital and meeting general corporate expenses.

Issue Details:

RPP Infra Projects has fixed a price band of Rs 68-75 per share for its initial public offering of 65 lakh shares.

The offer opens for bidding on 18 November 2010 and closes on 22 November 2010. The issue comprises of a fresh issue of 61 lakh equity shares by RPP Infra Projects and an offer for sale of 4 lakh equity shares by the promoters.

 

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Power Grid FPO will hit the market on 23 Nov

The FPO of Power Grid got subscribed 14.88 times as at 11:00 PM on Friday, according to the NSE web site. The issue received total bids of over 12.52bn shares as against 841.76mn shares on offer.

The issue closed on Nov. 11 for the qualified institutional bidders (QIB) category, which a whopping subscription of 18.52 times the allotted size.

The non-institutional investors (HNI) category got subscribed 28.86 times and the retail portion got subscribed 3.85 times. For the HNI and Retail categories the FPO closed on Friday.

Given the robust demand for the issue, the FPO is most likely to be priced at the higher end of the price band i.e. Rs. 90 per share and it will list on 23 Nov'10 on exchange, says report.

Retail investors and Power Grid employees will get equity shares at 5% discount to the final issue price.

The Book Running Lead Managers to the issue are SBI Capital Markets Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited and J.P. Morgan India Private Limited.

Post issue, the Government of India would continue to hold 69.4% of Power Grid. The equity shares of the company are listed on the BSE and the NSE.

The company is offering 10% fresh equity, while the Government is offloading 10% of its 86.36% stake in Power Grid. The issue comprises a fresh issue of 42,08,84,123 shares and an offer for sale of 42,08,84,123 shares by the

Besides disinvestment of the Government stake, the fresh capital raising would be used for part funding investment requirement of about Rs. 580bn.

The PSU has already tied up 86% of the funds required for its capex plan and the remaining amount will be raised through the FPO and bonds issues.

Company Info:

Power Grid aims to augment its power transmission capacity to 23,400 MW in the current fiscal year from 19,800 MW at present. The company has a current capacity of 75,000 circuit kms and plans to add 8,000 circuit kms in FY11.

Power Grid has earmarked capital expenditure of US$27bn for 2012-17, more than double its capex budget in its current five-year plan, chairman and managing director S.K. Chaturvedi was quoted as saying on November 8.

The FPO proceeds will be used for 13-14 transmission projects costing Rs. 226bn.

 

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IPO/FPO Updates: SCI, MOIL, Power Grids listing

SCI IPO opens for subscription on 30 Nov10

State-run Shipping Corporation of India will launch a follow-on public offer (FPO) on 30 November 2010. The offering will close on 3 December 2010 for retail bidders, while the institutional book will close a day earlier. The government will sell a 10% stake in the shipping services firm and the company will issue another 10% of fresh equity.

PowerGrid FPO shares to start trading from Nov 26

State-owned Power Grid Corporations new shares allotted to the public under its recent follow-on public offer will start trading on the bourses from November 26. The government divested 10% of its 86.36% stake in PowerGrid through the follow-on public offer, while the company offered an equal percentage of fresh equity.

MOIL IPO to be launched on Nov 26

MOIL's IPO would be open on 26th Nov'10. The issue size is likely to be around Rs 1,500 crore and the company is looking to dilute around 20% equity. CARE assigns CARE IPO GRADE 5 grading to the IPO of Manganese Ore India Ltd. (MOIL Limited). IPO grade indicates that the company has 'Strong fundamentals'. MOIL is a zero debt company with high profit margins, huge cash balance and high demand of its products. MOIL is currently a market leader in domestic manganese ore market commanding around 50% of the domestic market share.

 

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Claris Lifesciences fixes IPO price band at Rs.278-293/share; Issue opens on 24-Nov

Claris Lifesciences, a sterile injectables pharmaceutical company, is entering into primary market with an Initial Public Offer of Rs.300 cr.

It is set to enter capital market for subscription on November 24 and close on November 26, 2010.

Claris Lifesciences has set a price band of Rs 278-293 a share for its initial public offer.

It is one of the largest Indian sterile injectables pharmaceutical companies with a presence in 76 countries worldwide. Products offering comprises 113 products across multiple markets and therapeutic areas. All of its products are off-patent products, a significant majority of which are capable of being directly injected into the body and are predominantly used in the treatment of critical illnesses.

The object of the IPO are to setting up of a new plant comprising a small volume parenterals line - a PVC bag line, a non-PVC bag line and a fat emulsion line. It will be used for setting up of a new manufacturing line for propofol and other fat emulsion products at existing plant in Clarion IV. The funds will also be used construction of a facility for research and development at Clarion manufacturing facilities; and prepayment of an identified term loan.

Maximum Subscription Amount for Retail Investor : Rs. 200000Enam Securities Private Limited, Edelweiss Capital

Limited, JM Financial Consultants Private Limited and ICICI Securities Limited are the book running lead managers to the issue.

Issue Detail:

Issue Open: 24-Nov'10 26-Nov'10

Offer Price: 278-293 per Equity Share

Issue Size: Rs. 300.00 Crore

Face Value: Rs. 10 Per Equity Share

 

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SCI IPO opens for subscription on 30 Nov10

State-run Shipping Corporation of India will launch a follow-on public offer (FPO) on 30 November 2010. The offering will close on 3 December 2010 for retail bidders, while the institutional book will close a day earlier. The government will sell a 10% stake in the shipping services firm and the company will issue another 10% of fresh equity. The money will be used for its expansion plan, which includes entry into port and terminal management in joint venture with a global company.

PowerGrid FPO shares to start trading from Nov 26

State-owned Power Grid Corporations new shares allotted to the public under its recent follow-on public offer will start trading on the bourses from November 26. The government divested 10% of its 86.36% stake in PowerGrid through the follow-on public offer, while the company offered an equal percentage of fresh equity.

MOIL IPO to be launched on Nov 26

MOIL's IPO would be open on 26th Nov'10. The issue size is likely to be around Rs 1,500 crore and the company is looking to dilute around 20% equity. CARE assigns CARE IPO GRADE 5 grading to the IPO of Manganese Ore India Ltd. (MOIL Limited). IPO grade indicates that the company has 'Strong fundamentals'. MOIL is a zero debt company with high profit margins, huge cash balance and high demand of its products. MOIL is currently a market leader in domestic manganese ore market commanding around 50% of the domestic market share.

 

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RPP Infra Projects IPO subscribes 1.72 times so far...On 22-Nov'10

RPP Infra Projects Ltd is in the business of infrastructure development such as Highways, Roads and Bridges. The Company is also involve in civil work like SEZ Development, Water Management projects, Irrigation and Power Projects. RPP Infra's mainly focused in South India region including Karnataka, Andhra Pradesh, Tamil Nadu, and Andaman Nicobar and is also executing a Railway project in Srilanka.

It Provides integrated engineering, procurement and construction services for: 1. Infrastructure Projects 2. Civil Construction Services 3. Transportation Engineering and Irrigation & Water Supply Projects etc..

Issue Details:

Open - Close Date: 18 Nov, 2010 - 22 Nov, 2010

Issue Size(In Cr.): Rs 48.75

Offer Price: Rs 68 - 75

Min Bid Qty.: 80

Max Bid Qty.: 2640

No. of shares offered/reserved (in cr)
• Qualified Institutional Buyers 0.3
• Non Institutional Investors 0.09
• Retail Investors 0.21
• Employee Reservation 0.04

Total New Shares Offered (in cr): 0.65

Face Value: Rs 10

Under Writer/Lead Manager: Cameo Corporate Services Limited

Registrar: VC Corporate Advisors Pvt Ltd

Total Subscription (times): 1.72

Retail Investors (times): 1.07

Qualified Institutional Buyers (times): 0

Non Institutional Investors (times): 2.92

 

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RPP Infra Projects IPO subscribed 2.97 times on day third & last day

The initial public offer (IPO) of infrastructure firm R.P.P. Infra Projects was subscribed 2.97 times on day third and the last day of the issue today, 22 November 2010. The IPO got bids for 192.90 lakh shares, compared with 65 lakh shares on offer.

The company is offering equity shares in the price band of Rs 68-75 per share through a 100% book building process. The issue closes on Monday, 22 November 2010. Credit rating agency Fitch has assigned IPO Grade 2 to the company's IPO indicating below average fundamentals.

 

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Upcoming IPOs: MOIL, Punjab & Sind Bank, Lavasa Corp

Punjab & Sind Bank plans to raise about Rs 600 crore through an initial public offer, which is likely to hit the capital in the first half of Dec. It is planning to dilute 17.93% government stake through this issue, this translates into 40 million shares. Presently government holds 100% stake in the company.

Hindustan Construction Company received an observation letter from market regulator for its unit Lavasa Corp's proposed up to Rs 2000 crore initial public offer to fund construction of a township near Pune in Maharashtra

MOIL's IPO would be open for subscription from 26th Nov'10 to 1 Dec' 10. The last date for qualified institutional buyers (QIB) has been fixed as Nov. 30. The issue size is likely to be around Rs 1,500 crore and the company is looking to dilute around 20% equity. CARE assigns CARE IPO GRADE 5 grading to the IPO of Manganese Ore India Ltd. (MOIL Limited). IPO grade indicates that the company has 'Strong fundamentals'. MOIL is a zero debt company with high profit margins, huge cash balance and high demand of its products.