BGIL provides visibility across the IT infrastructure, intelligently identifies security threats and compliance breaches, and automates security and compliance processes to reduce risk. They have total of 32 Radio Frequency Identification solutions, out of which they got registration for 8 solutions from Government of India. The IT division of the Company has developed products in house in its R& D centre in Noida using Radio Frequency Identification (RFID) technology. RFID is the key technology of BGIL and used for identification and tracking of the identity, location and conditions of assets, tools, inventory, people using radio waves. The issue would constitute 42.42% of the fully diluted post issue paid-up capital of the company. Price band: Rs. 75 to Rs. 82 per equity share of face value of Rs. 10/- eachThe issue price is 7.5 times the face value at the lower end of the price band and 8.2 times the face value at the higher end of the price band

Company Promoters:

The promoters of the company are:

1. Mr. Rakesh Bhhatia    NSE
2. Mrs. Arti Bhatia            BSE

Objects of the Issue:

The object of the issue are to:

1. Setting up of Corporate office at Noida & Branch Office at Mumbai;
a. Purchase of owned Corporate office at Noida & relocation of Branch Office at Mumbai
b. Upgradation of Digital Post Production Studio and Investment in IT division
2. Expansion of R&D technology centre;
3. Repayment of bank borrowings;
4. Meeting long term working capital requirements;
5. Meeting general corporate purposes; and
6. Meeting Issue Expenses.

Issue Detail:

»»  Issue Open: Jul 11, 2011 – Jul 14, 2011
»»  Issue Type: 100% Book Built Issue IPO
»»  Issue Size: 6,720,000 Equity Shares of Rs. 10
»»  Issue Size: Rs. 50.40 – 55.10 Crore
»»  Face Value: Rs. 10 Per Equity Share
»»  Issue Price: Rs. 75 – Rs. 82 Per Equity Share
»»  Market Lot: 75 Shares
»»  Minimum Order Quantity: 75 Shares
»»  Listing At: BSE, NSE

Bharatiya Global Infomedia Ltd IPO Grading

CARE has assigned an IPO Grade 2 to Bharatiya Global Infomedia IPO. This means as per CARE, company has ‘Below Average Fundamentals‘. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.

Polyvinyl chloride (PVC) manufacturer Sanco Industries plans a public issue of 75 lakh equity shares having a face value of Rs 10 each. It has filed draft red herring prospectus with the market regulator SEBI.

The issue will constitute 55.55% of the post-issue paid-up equity share capital of company.

Sanco Industries is in business of manufacturing of rigid plain PVC electrical conduit pipes & profiles, PVC insulated wire & cables and PVC/PPR plumbing pipe. The products are used in high class indoor and outdoor electrical installations and telecom wiring applications while PVC/PPR plumbing pipe is used in sewage, drainage, cable ducting, bore well and water supply in rural and urban areas.

Company intends to use issue proceeds for expansion of existing manufacturing capacity; setting up manufacturing facilities for copper wire rod and long term working capital requirements. Total estimated fund requirement stands at Rs 33.45 crore.

For the period of six months ended on September 2010, company reported a net profit of Rs 1.7 crore on total income of Rs 26.48 crore. For financial year 2009-10, it had posted net profit of Rs 1.74 crore crore on total income of Rs 36.4 crore.

Source:- Moneycontrol.com

Goodwill Hospital is engaged in running a multi-specialty hospital at Noida under the brand Ojjus Medicare, with a super specialty focus on core areas such as neurology and neuro surgery, cardiology and cardiac surgery and orthopaedics.

The company proposes to spend issue proceeds for setting up of diagnostic centre at Faridabad, establishment of polyclinics and repayment or prepayment of loan. Estimated cost by the company is at Rs 49.28 crore.

For the period of eight months ended on November 2010, the company reported consolidated net profit of Rs 8.28 crore on total income of Rs 29.82 crore. For financial year 2009-10, it had posted net profit of Rs 2.75 crore on total income of Rs 22.91 crore.

Source:- Moneycontrol.com

It has filed draft red herring prospectus (DRHP) with SEBI. The issue will constitute 25% of the post-issue paid-up equity share capital of company.

The company is engaged in manufacturing of distribution transformers, power transformers, furnace transformers and special purpose transformers. It is in the business of manufacturing transformers for more than 30 years.

M and B has grown up its capacity of manufacturing 550 transformers to 5,109 per annum. Its existing annual production capacity in terms of KVA is 75,000 KVA of transformer per month on single shift basis.

It also intends to use issue proceeds for setting up new grid connected 4 MWP solar photovoltaic power plant at Village Gagorni, District Rajghar, Madhya Pradesh. Total estimated cost of the project is Rs 71.36 crore.

For the period of seven months ended on October 2010,  M and B Switchgears reported net profit of Rs 59.25 lakh on total income of Rs 26.59 crore. It has debt of Rs 14.91 on its books for the same period.

For the year ended FY09 and FY10, it had posted a net profit of Rs 40.95 lakh and Rs 92.14 lakh on total income of Rs 26.58 crore and Rs 37.50 crore, respectively.

Promoter will reduce stake in company to 70.69% from 94.26% post issue.

Source:- Moneycontrol.com

The issue will constitute 25% of the post-Issue paid-up capital of the company.

The proposed IPO is being made through a 100% book building process wherein not more than 50% of the issue shall be allocated on a proportionate basis to qualified institutional buyers (QIB) bidders. Provided that the company may allocate up to 30% of the QIB portion to anchor investors on a discretionary basis out of which one-third shall be reserved for domestic mutual funds.

Further, 5% of the QIB portion (excluding the anchor investor portion) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid bids being received at or above the issue price. Further, not less than 15% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the issue shall be available for allocation on a proportionate basis to retail individual bidders, subject to valid Bids being received at or above the issue price.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.

The book running lead managers to the Issue are IDFC Capital Limited and Avendus Capital Private Limited.

Tribhovandas Bhimji Zaveri Limited primarily sells gold jewellery & diamond-studded jewellery; additionally also sells other products, including platinum jewellery, jadau jewellery and silverware. It has 14 showrooms in nine cities across five states, which have a total carpet area of approximately 44,000 sq. ft. Its flagship showroom in Zaveri Bazaar, Mumbai, was established in 1864.

Source:- Moneycontrol.com

Going with the same SMC Global Securities report, the new year will also ring in success for IPOs with an estimated 90,000 crore to be raised from over 100 public offers. Let’s take a look at five of the most lucrative public offers in 2011.

Micromax IPO
India’s biggest domestic mobile handset seller Micromax Informatics is expected to go public early in 2011. The company filed its prospectus late last month. The company is expecting to raise 426 crore through the offer. The company will use 50 percent of the IPO proceeds to set up a handset manufacturing plant in India while the rest would be spent in areas such as marketing and expansion. Micromax, according to IDC, has a 4.1 percent market share in India and is now valued at over $1 billion. M Financial, Citigroup, Edelweiss and Nomura are the book running lead managers to the issue. For the year ended March 2010, Micromax had sales of 1,600 crore on selling over 70 lakh handsets, with a net profit of 200 crore, as against revenue and profit of 350 crore and 35 crore respectively for the previous year.

Tata Autocomp Systems IPO
Auto parts maker Tata Autocomp Systems is to enter capital markets so as to raise 750 crore through an Initial IPO which include equity shares of 10 each. As per the prospectus, shareholders including Tata Motors, Tata Sons, Tata Capital and Tata Industries will together sell nearly 35.63 million shares in the company. The Book Running Lead Managers to the offer are JM Financial Consultants, Tata Capital Markets and JP Morgan India. The issue will dilute the company’s post-issue equity capital by at least 25 percent. The company reported 41.77 crore net profit for the year ended March 31, 2010. For the half year ended September 30, 2010, profit stood at 35.62 crore.

IOT Infrastructure and Energy Services IPO
Indian Oil Corporation (IOC) co-promoted oil EPC firm, IOT Infrastructure and Energy Services is all set to hit the capital market with an IPO of 800 crore before March. The company had filed its Draft Red Herring Prospectus with SEBI for the IPO in September which entails marginal divestment by its existing owners and issue of fresh shares. Proceeds of the IPO are to be used for a capital expenditure of 1,920 crore for setting up a facility in Paradip and 350 crore outlay planned for a unit in Raipur. The public issue involves sale of 58.19 million fresh shares and offer for sale (divesment) of 14.59 million shares by the promoters. The company posted consolidated revenues of 15.2 billion with an EBITDA margin of 18.5 percent and net margin of 8.8 percent during FY10. The sole Book running lead manager to the issue is Enam Securities.

L&T Finance IPO
L&T Finance, the financial arm of Larsen and Toubro (L&T) has filed for an IPO to raise 1.500 crore, which is expected to hit the capital market in the fourth quarter of FY2011. The dilution for L&T Finance IPO will be around 10-12 percent. The company intends to utilize the proceeds from the issue to meet the capital adequacy requirements to support the future growth in their business. The book running lead managers to the issue are HSBC, Citigroup, JM Financial, Barclays Capital, and Credit Suisse. The company’s market capitalization stands at 120,193.44 crore. L&T announced a 32 percent rise in net profit for the quarter ended September 2010 at 765 crore on an 18 percent revenue growth.

HPCL-Mittal Energy (HMEL) IPO
The joint venture between Hindustan Petroleum Corporation and Singapore-based Mittal Energy Investment, HPCL-Mittal Energy (HMEL) is going to sell 10 percent stake each in the Bathinda refinery in a public offering in Q4 of 2011. The IPO is expected to raise 1,000-1,500 crore. Both HPCL and Mittal Energy hold stake of 49 percent each in the company, while the financial institutions hold the rest 2 percent. HPCL reported a net profit of 2,089.61 crores for the second quarter ended September 30, 2010 compared with a loss of 136.68 crores in the same period last year.

Source:- siliconindia.com

Last week, the telecom ministry had sent notices to 85 licencees named by the government auditor, asking to reply within 15 days on why the permits, given in 2008, should not be cancelled. However, Rozanov said the letter received by the company was related to paying “liquidated damages” and not licence cancellation.

The Telecom Regulator Authority of India had earlier recommended cancelling some telecom licences, including 10 held by Sistema Shyam, for failing to meet rollout requirements . “This doesn’t affect Sistema’s plans in India because we haven’t received any show cause notice and at this stage continue to roll out our network,” he said.

Inquiries stemming from scam alleging former telecom minister A Raja gave licences to ineligible companies at much lower than market prices, costing the exchequer estimated Rs 1.76 lakh crore in revenue.

SSTL is a joint venture company between Russia’s oil-totelecom group Sistema, which owns 73.7% equity, and India’s Shyam Group, owning 23.7%. The rest of the stakes are publicly held. SSTL operates in 13 of India’s 22 telecom zones and holds licences for all circles.

Sistema’s stake in SSTL will reduce to about 54% after the deal closes, well under the government cap of 74% foreign investment mandated in Indian telecom sector.

Earlier in the day, the telco signed an agreement with Russia’s Gazprombank for a $200-million loan to further expand operations.

“We expect that next year we should be ready for listing. Then the board will make a decision depending on the market condition,” Rozanov said.

Source:- economictimes

The issue comprises of a fresh issue of 42,345,365 equity shares by the company and an offer for sale of 42,345,365 equity shares by the President of India, acting through the ministry of shipping, government of India. The issue comprises a net issue to the public of 84,267,276 equity shares and a reservation of up to 423,454 equity shares for subscription by eligible employees.

The company aims to raise over Rs 1,100 crore through the FPO. The issue will close for subscription on December 3. Central and state governments’ holding will reduce to 63.75% post issue.

The management said the company ordered construction of 29 vessels, which are expected to be delivered between 2010-2013.

SCI has approximately 35% share of Indian flagged tonnage as of June 30, 2010, according to the website of Directorate General of Shipping, Government of India (DG Shipping). As of September 30, 2010, it owned a fleet of 74 vessels of 5.11 million dead weight tonnage (DWT).

Its fleet includes dry bulk carriers, very large crude carrier (VLCC) tankers, crude oil tankers, product tankers, container vessels, passenger-cum-cargo vessels, phosphoric acid and chemical carriers, LPG and ammonia carriers, and offshore supply vessels.

The company will not receive any proceeds from the offer for sale by governments. However, net proceeds from fresh issue will be used for part funding the equity portion for the acquisition of certain vessels by company and general corporate purposes.

SBI Capital Markets Limited, ICICI Securities Limited and IDFC Capital Limited are the book running lead managers to the issue.

Issue Detail:

»»  Issue Open: Nov 30, 2010 – Dec 03, 2010
»»  Issue Type: 100% Book Built Issue FPO
»»  Issue Size: 84,690,730 Equity Shares of Rs. 10
»»  Issue Size: Rs. 1,143.32 – 1,185.67 Crore
»»  Face Value: Rs. 10 Per Equity Share
»»  Issue Price: Rs. 135 – Rs. 140 Per Equity Share
»»  Minimum Order Quantity: 50 Equity shares
»»  Listing At: BSE, NSE

Maximum Subscription Amount for Retail Investor: Rs. 2,00,000

Reserved portion of QIBs, which closes today, was subscribed 20.19 times. The issue has received bids for more than 38 crore equity shares as against an issue size of 3.36 crore shares.

MOIL is India’s largest manganese ore producer and has 50% share in domestic manganese production. It is one of the lowest cost producers of manganese ore in the world.

The company aims to raise around Rs 1142.40-1260 crore at a price band of Rs 340-375 a share. The company will not receive any proceeds from the offer and all proceeds shall go to the selling shareholders. Retail investors and MOIL employees will get shares at 5% discount to the final offer price.

Source:- Moneycontrol

Incorporated as Manganese Ore (India) Limited (MOIL Limited) in 1962, MOIL Ltd. is one of the largest producer of manganese ore (largest in FY08 by volume) in India with four decades of industry experience. In FY10 the company produced 1,093,363 tonnes of manganese and has access to ~22.0 million tonnes of proved and probable reserves and 37.2 million tonnes of measured mineral resources of manganese ore. MOIL currently operates seven underground mines (Kandri, Munsar, Beldongri, Gumgaon, Chikla, Balaghat and Ukwa mines) and three opencast mines (Dongri Buzurg, Sitapatore, and Tirodi) and is actively involved in manganese ore exploration and development activities. Conferred the Mini Ratna status in 2008, It was also awarded with the National Energy Conservation Award for Kandri mine and the National Quality Circle Award for the year 2009.
The company will come out with its initial public offer between November 26 and December 1. MOIL hopes to raise total of Rs. 1,238 crore at the upper end of the price band, including 5 per cent discount to retail investors and MOIL employees.

In all a 20 per cent stake in the company will be divested with the centre divesting 10 per cent and the governments of Maharashtra and Madhya Pradesh divesting 5 per cent stake each.

MOIL has aggressive expansion plans and hopes to boost its mining capacity from the current 1.1 mn tonnes to 1.5 mn tonnes by 2015. And the listing is expected to give a boost to its expansion plans.

“We have seen that post listing companies have looked at ways to grow. MOIL has also drawn up plans and they are aware that they have a cash balance to fall back on,” said Ketan Shaah, senior VP  at Edelweiss Capital Ltd.

Manganese has a direct connect to steel demand and with steel capacity slated to increase from the current 65 million tonnes to 100 million tonnes by 2015, the company is expecting exponential growth.

“The company is well positioned to capture the growth of steel as capacity grows from current 65 million tonnes to 100 million tonnes per annum by 2015,” said KJ Singh, chairman and MD of MOIL.

The government, which hopes to raise Rs. 40,000 crore through disinvestment this fiscal, has already mopped up close to Rs. 20,000 crore through divestment in PSUs Satluj Jal Vidyut Nigam, Engineers India, Coal India and Power Grid.

After MOIL, the follow-on public offer of state-owned Shipping Corporation is next in line. Its public offer would open on November 30 and close on December 3. This would be followed by disinvestment in Hindustan Copper, whose FPO opens in the first week of December.

The government is likely to dilute its stake in Indian Oil Corporation, ONGC and SAIL in the last quarter of the current fiscal.

In 2009-10, the government had raised Rs. 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.

MOIL’s offer opens on the day the Power Grid stock lists, so will investors give this offering  the same response remains to be seen.
Company Promoters:

The promoters of the company is the President of India, acting through the MoS, Government of India (GoI).

Present paid-up Equity Share capital of GoI – 81.6%
Post-Offer paid-up Equity Share capital of GoI – 71.6

Objects of the Issue:

The objects of the Offer are:
1. To carry out the disinvestment of 33,600,000 Equity Shares by the Selling Shareholders and
2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Issue Detail:

• Issue Open: Nov 26, 2010 – Dec 01, 2010
• Issue Type: 100% Book Built Issue IPO
• Issue Size: 33,600,000 Equity Shares of Rs. 10
• Issue Size: Rs. 1,142.40 – 1,260.00 Crore
• Face Value: Rs. 10 Per Equity Share
• Issue Price: Rs. 340 – Rs. 375 Per Equity Share
• Market Lot: 17 Shares
• Minimum Order Quantity: 17 Shares
• Listing At: BSE, NSE

Maximum Subscription Amount for Retail Investor: Rs. 2,00,000

Ipo Analysis