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.

Here are the highlights:

* Net market borrowing for 2011-12 seen at Rs 3.43 trillion.

* Revised gross market borrowing for 2010-11 at Rs 4.47 trillion

FISCAL DEFICIT

* Fiscal deficit seen at 5.1 percent of GDP in 2010-11

* Fiscal deficit seen at 4.6 percent of GDP in 2011-12
* Fiscal deficit seen at 3.5 percent of GDP in 2013-14

SPENDING

* Total expenditure in 2011-12 seen at 12.58 trillion rupees

* Plan expenditure seen at Rs 4.41 trillion in 2011-12, up 18.3 percent

REVENUE

* Gross tax receipts seen at Rs 9.32 trillion in 2011-12

* Corporate tax receipts seen at Rs 3.6 trillion in 2011-12

* Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 2012-13

* Customs revenue seen at Rs 1.52 trillion in 2011-12

* Factory gate duties seen at Rs 1.64 trillion in 2011-12

* Non-tax revenue seen at Rs 1.25 trillion in 2011-12

* Service tax receipts seen at Rs 82,000 crore in 2011-12

* Telecom fees, auction of broadband spectrum to raise Es 296.5 billion in 2011-12

SUBSIDIES

* Subsidy bill in 2011-12 seen at Rs 1.44 trillion

* Food subsidy bill in 2011-12 seen at Rs 605.7 billion

* Revised food subsidy bill for 2010-11 at Rs 606 billion

* Fertiliser subsidy bill in 2011-12 seen at Rs 500 billion

* Revised fertiliser subsidy bill for 2010-11 at Rs 550 billion

* Petroleum subsidy bill in 2011-12 seen at Rs 236.4 billion

* Revised petroleum subsidy bill in 2010-11 at Rs 384 billion

* State-run oil retailers to be provided with Rs 200 billion cash subsidy in 2011-12

GROWTH, INFLATION EXPECTATIONS

* Inflation seen at 5 percent in 2011-12

* Economy expected to grow at 9 percent in 2012, plus or minus 0.25 percent

TAXES

* Standard rate of excise duty held at 10 percent

* Service tax rate held at 10 percent

* Scope of service tax to be widened

* Minimum alternate tax raised to 18.5 percent from 18 percent

* Iron ore export duty raised to 20 percent

* Personal income tax exemption limit raised to Rs 180,000

* Surcharge on domestic companies raised to 5 percent

DISINVESTMENT

* Disinvestment in 2011-12 seen at Rs 400 billion

Source:- Economic Times

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

SEBI said Reliance Infrastructure and Reliance Natural Resources, which has since been merged into Reliance Power, had used money raised through overseas borrowing and foreign bonds to invest in the stock market.

The regulator said its investigations found Ambani’s Reliance Infra and Reliance Natural Resources were “responsible for misrepresenting the nature of investments in ‘yield management certificates/deposits’ and the profits and losses thereof,” in their annual reports for the years ending in March 2007, 2008 and 2009.

The regulator said it had issued “show cause” notices to the companies and the executives in June 2010.

Reliance Infra said in a statement it had voluntarily settled the matter with the regulator, with no admission or denial of guilt. It said its directors had paid the entire settlement fee of 250 million rupees ($5.5 million).

Anil Ambani, one of the formerly feuding billionaire brothers and one of the most influential businessman in India, leads the Anil Dhirubhai Ambani Group conglomerate, some of whose companies are burdened with heavy debt loads.

Ambani’s Reliance Communications, which is India’s second-largest mobile phone carrier, alone had net debt of 291.9 billion rupees ($6.4 billion) at the end of September.

Ambani, ranked as the world’s 36th richest man by Forbes in 2010, failed in efforts last year to raise funds for the telecom company by selling a 26 percent stake and merging its tower arm with a rival.

“I don’t think there will be any financial impact, since they have not been barred from the primary market,” said Neeraj Dewan, director at Quantum Securities, adding there would be a “sentiment setback” on the companies in the short term.

“If they need to raise funds, it should not be a problem, they can raise it from the primary market,” he said.

SEBI said four other directors in Reliance Infrastructure were also barred from stock investments until December.

Source:- in.reuters.com

The price band and the minimum bid lot for the issue will be decided by the company in consultation with the book running lead managers and will be advertised at least one working day prior to the bid/issue opening date.

The company may raise Rs 3,691 crore via FPO at today’s closing price of Rs 647.60 a share. Market capitalisation stands at Rs 58,427.39 crore.

Tata Steel said net sales for the quarter ended December 2010 (Q3FY11) would be flat as compared to Q2FY11. Operating results would decline in Q3 due to rise in raw material prices, the company says.

Source:- Moneycontrol

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