Fortis Healthcare has issued equity shares in a pre-IPO placement to 2 UK-based firms. The company has signed pr-IPO placement agreements for allotment of 1 mn equity shares each to Raj Kumar Bagri and Apurv Bagri of Metdist Group and 2 mn shares to Trinity Capital. The Metdist Group is a global metal trading firm based in London and has a presence in Malaysia, Thailand, China, the UAE and India. Trinity was formed in 2006 to invest in real estate and real estate-related entities in India.
Fortis has already signed two pre-IPO placements, aggregating up to $33.33 mn (about Rs. 150 crores), with Quantum, Blue Ridge Partnership and Blue Ridge Offshore Master.
The equity issued as per pre-IPO placements would be subject to lock-in after the completion of the IPO as per SEBI regulations.
Read the articles in The Economic Times and Business Standard.
Thursday, January 18, 2007
Textile companies to raise about Rs. 1000 crores through IPO
Booming capital markets are encouraging companies in making the most of the situation. Five leading textile companies are set to raise about Rs. 1000 crores through IPOs in the near future to meet expansion plans, that include opening up retail stores and adding to manufacturing capacities.
The textile firms, which have filed their Draft Red Herring Prospectus (DRHP) with market regulator SEBI, include Oswal Woolen Mills Limited (OWM), House of Pearl Fashions Limited, Yogindera Worsted Limited and Asahi Songwon Colors Limited. The public offers of Pearl Fashions and Yogindera would open on January 16, while Oswal and Asahi have filed their documentation with the market regulator and are in the process of scheduling their IPOs. Total capital expenditure, which these five companies have finalized add up to Rs. 1217 crores, of which the major portion would come from the market.
Oswal Woolen, a flagship company of Nahar Group of Companies, is looking to raise about Rs. 179 crores with a public issue of 8.32 mn equity shares to fund growth plans, which include expanding retail presence through its 'Monte Carlo' brand outlets for woolen hosiery and cotton garments. OWM would spend Rs 40 crore on expansion of Monte Carlo brand outlets, taking the number of franchisee-run stores from 21 to 144 by 2009 and company owned stores to six. House of Pearls will tap the market with a total issue of 5.98 mn equity shares, through which it aims to raise up to Rs. 396 crores. It also aims to increase production capacity of the group from 20 mn pieces per annum to 40 mn pieces per annum. The company has earmarked an investment of about Rs. 360 crores for its expansion plans over the next three years, which would see it opening 10 pilot stores for its brand in the country by end of 2007. Asahi Songwon has lined up an expansion plan of Rs. 52 crores, of which it plans to raise Rs. 44 crores through the IPO. It intends to expand manufacturing facilities of CPC Blue Crude from present level of 3600 TPA to 10,800 TPA, set up a plant for manufacturing pigment beta blue and a new captive power plant at Padra, Vadodara. Yarn manufacturer Yogindera Worsted would raise Rs 14.4 crore through its IPO which would comprise an issue of 60 lakh fresh equity shares. The company is planning to utilize the funds to add 3,200 spindles to its current 6,040. The total expansion would need an investment of about Rs. 16 crores. The acrylic and blended company is also planning to diversify into ready to wear garments and would utilize part of the funds to set up a garment manufacturing unit in their Ludhiana facility.
Besides these four, Orient Craft has announced its plans of hitting the capital market soon to raise between Rs. 300-350 crores. In all, the textile public offers are likely to gross in over Rs. 1000 crores from the market.
Read the article in The Economic Times.
The textile firms, which have filed their Draft Red Herring Prospectus (DRHP) with market regulator SEBI, include Oswal Woolen Mills Limited (OWM), House of Pearl Fashions Limited, Yogindera Worsted Limited and Asahi Songwon Colors Limited. The public offers of Pearl Fashions and Yogindera would open on January 16, while Oswal and Asahi have filed their documentation with the market regulator and are in the process of scheduling their IPOs. Total capital expenditure, which these five companies have finalized add up to Rs. 1217 crores, of which the major portion would come from the market.
Oswal Woolen, a flagship company of Nahar Group of Companies, is looking to raise about Rs. 179 crores with a public issue of 8.32 mn equity shares to fund growth plans, which include expanding retail presence through its 'Monte Carlo' brand outlets for woolen hosiery and cotton garments. OWM would spend Rs 40 crore on expansion of Monte Carlo brand outlets, taking the number of franchisee-run stores from 21 to 144 by 2009 and company owned stores to six. House of Pearls will tap the market with a total issue of 5.98 mn equity shares, through which it aims to raise up to Rs. 396 crores. It also aims to increase production capacity of the group from 20 mn pieces per annum to 40 mn pieces per annum. The company has earmarked an investment of about Rs. 360 crores for its expansion plans over the next three years, which would see it opening 10 pilot stores for its brand in the country by end of 2007. Asahi Songwon has lined up an expansion plan of Rs. 52 crores, of which it plans to raise Rs. 44 crores through the IPO. It intends to expand manufacturing facilities of CPC Blue Crude from present level of 3600 TPA to 10,800 TPA, set up a plant for manufacturing pigment beta blue and a new captive power plant at Padra, Vadodara. Yarn manufacturer Yogindera Worsted would raise Rs 14.4 crore through its IPO which would comprise an issue of 60 lakh fresh equity shares. The company is planning to utilize the funds to add 3,200 spindles to its current 6,040. The total expansion would need an investment of about Rs. 16 crores. The acrylic and blended company is also planning to diversify into ready to wear garments and would utilize part of the funds to set up a garment manufacturing unit in their Ludhiana facility.
Besides these four, Orient Craft has announced its plans of hitting the capital market soon to raise between Rs. 300-350 crores. In all, the textile public offers are likely to gross in over Rs. 1000 crores from the market.
Read the article in The Economic Times.
Tata Steel buys domestic ferro-alloy maker Rawmet Ferrous
While being occupied with the Corus deal in the international arena, India’s leading private sector steelmaker Tata Steel is also making news in the domestic front. Tata Steel has acquired 100% stake in an unlisted Kolkata-based ferro-alloys firm, Rawmet Ferrous Industries, for an undisclosed sum.
The agreement was signed at Bhuvaneshwar by Tata Steel and representatives of IMR Metallurgical Resources AG, which holds 66.46% equity stake in Rawmet. Officials of Rawmet Commodities, which holds 12.48% equity stake, were also present. On conclusion of the above transaction, the board of Rawmet Ferrous Industries will be reconstituted to include representatives of Tata Steel.
Read the articles in The Economic Times and Business Standard.
The agreement was signed at Bhuvaneshwar by Tata Steel and representatives of IMR Metallurgical Resources AG, which holds 66.46% equity stake in Rawmet. Officials of Rawmet Commodities, which holds 12.48% equity stake, were also present. On conclusion of the above transaction, the board of Rawmet Ferrous Industries will be reconstituted to include representatives of Tata Steel.
Read the articles in The Economic Times and Business Standard.
Tata Motors to bid for Daewoo Romania
The Tata Group is planning to buy Daewoo Automobile Romania. Daewoo Romania was established in 1994 as a 51:49 JV between the Daewoo Group and the Romanian government.
The Romanian plant can produce 100,000 cars, 150,000 engines and 200,000 trans-axles. Bidding for Daewoo Automobile Romania, would heat up because of interest from global automobile giants such as Ford and Renault-Nissan and the Tata Group, which is in the middle of a bidding war with Brazil's CSN for the Anglo-Dutch steel-maker Corus. Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines.
Daewoo was bought over by General Motors in 1999, but the US giant did not take over the Romanian venture. Recently, the Romanian government bought out Daewoo’s stake for $50 million and restructured the $10 million of the company’s debt.
Tata Motors last year acquired Nissan's South Africa plant for an undisclosed amount. The year before, it took over Daewoo Commercial Vehicles for $102 mn.
Read the Business Standard article.
The Romanian plant can produce 100,000 cars, 150,000 engines and 200,000 trans-axles. Bidding for Daewoo Automobile Romania, would heat up because of interest from global automobile giants such as Ford and Renault-Nissan and the Tata Group, which is in the middle of a bidding war with Brazil's CSN for the Anglo-Dutch steel-maker Corus. Daewoo Automobile Romania makes a range of Daewoo vehicles like the Matiz, Cielo, Nubira and Tacuma, and 1.5 litre petrol engines.
Daewoo was bought over by General Motors in 1999, but the US giant did not take over the Romanian venture. Recently, the Romanian government bought out Daewoo’s stake for $50 million and restructured the $10 million of the company’s debt.
Tata Motors last year acquired Nissan's South Africa plant for an undisclosed amount. The year before, it took over Daewoo Commercial Vehicles for $102 mn.
Read the Business Standard article.
Tata Group in talks to acquire Sri Lanka's Suntel
The Tata Group is in talks to buy out Suntel, Sri Lanka’s premier private telecom operator, through group company VSNL’s international arm, VSNL Global. VSNL Global recently bagged international long distance (ILD) and internet service provider (ISP) licenses in Sri Lanka, and is hoping to expand inorganically to become an integrated telecom player in the island nation.
If the deal is successful, Suntel will be VSNL’s third telecom service provider outside India. VSNL already has 51% stake in Neotel, South Africa’s second national operator, and is also in the process of picking up 26% in InfraCo, a new telecom network operator in South Africa.
Suntel is the largest fixed-line competitor to incumbent Sri Lanka Telecom (SLT) and has a subscriber base of about 250,000. It offers a range of voice, data, ISDN, dedicated packet solutions and internet services. Suntel is a joint venture between Swedish telecom giant Overseas Telecom, Metrocorp, Townsend of Hong Kong, National Development Bank, and International Finance Corporation (IFC), private equity arm of the World Bank Group. Suntel’s net profit for the six months to June 30 dipped by LKR 93 mn year-on-year to LKR 290 mn, while revenues virtually doubled to LKR 3.31 bn from LKR 1.96 bn a year earlier.
Read The Economic Times article.
If the deal is successful, Suntel will be VSNL’s third telecom service provider outside India. VSNL already has 51% stake in Neotel, South Africa’s second national operator, and is also in the process of picking up 26% in InfraCo, a new telecom network operator in South Africa.
Suntel is the largest fixed-line competitor to incumbent Sri Lanka Telecom (SLT) and has a subscriber base of about 250,000. It offers a range of voice, data, ISDN, dedicated packet solutions and internet services. Suntel is a joint venture between Swedish telecom giant Overseas Telecom, Metrocorp, Townsend of Hong Kong, National Development Bank, and International Finance Corporation (IFC), private equity arm of the World Bank Group. Suntel’s net profit for the six months to June 30 dipped by LKR 93 mn year-on-year to LKR 290 mn, while revenues virtually doubled to LKR 3.31 bn from LKR 1.96 bn a year earlier.
Read The Economic Times article.
Sabre Capital plans $1bn India fund
Sabre Capital Worldwide, Inc. may launch a new $1 bn fund within the next 9-12 months. Sabre had earlier set up an India-specific $350 mn private equity fund. The company has already raised $50 mn of the $350 mn fund. The second and final tranche of capital, which will include the entire balance amount, will be raised by February.
The fund, called Sabre Abraaj, has already made an investment of $16 mn in an unlisted mid-sized infrastructure company based in Hyderabad. The fund is looking at mid-level corporates and may invest in the range of $15-50 mn. About 50-60% of the investors in the fund are from the Middle-East, while the others hail from Europe, the US and East Asia. Though there is a 10-year commitment for investments, the company intends to give at least 2-3 times returns within four years to investors.
Read the Business Standard article.
The fund, called Sabre Abraaj, has already made an investment of $16 mn in an unlisted mid-sized infrastructure company based in Hyderabad. The fund is looking at mid-level corporates and may invest in the range of $15-50 mn. About 50-60% of the investors in the fund are from the Middle-East, while the others hail from Europe, the US and East Asia. Though there is a 10-year commitment for investments, the company intends to give at least 2-3 times returns within four years to investors.
Read the Business Standard article.
Power Finance Corporation IPO to begin on Jan 31; other government power companies to follow soon
The UPA Government has started diluting the centre's stake in major state-owned power companies without resorting to divestment. The Power Finance Corporation (PFC) will offer a 10% additional equity through an Initial Public Offer (IPO) that will open on January 31. The offer would close on February 6. Post offer, the government's equity in the company will be reduced to 89.78%. The PFC hopes to mobilize Rs. 1000 crores through the first public offer of its 11.73 crore shares through a 100% book building process. The company has fixed a price band of Rs. 73 – 85 per share. Book value has been estimated to be Rs. 67 per share. Enam Financial, ICICI Securities and Kotak Mahindra Capital have been retained as the book running lead managers for the issue.
With the PFC IPO opening shortly, the Government's move to mobilize funds for power sector has begun. In the next three months, the centre proposes to dilute its stake in three other major power companies by 10% each. The other companies that are in the process of lining up public offers include Power Grid Corporation of India Ltd (PGCIL), National Hydroelectric Power Corporation (NHPC) and North Eastern Electric Power Company (NEEPCO).
Read the article in The Economic Times.
With the PFC IPO opening shortly, the Government's move to mobilize funds for power sector has begun. In the next three months, the centre proposes to dilute its stake in three other major power companies by 10% each. The other companies that are in the process of lining up public offers include Power Grid Corporation of India Ltd (PGCIL), National Hydroelectric Power Corporation (NHPC) and North Eastern Electric Power Company (NEEPCO).
Read the article in The Economic Times.
Subscribe to:
Posts (Atom)