Welspun India allots additional shares to Temasek Holdings
Mumbai: Through a notice issued to stock exchanges Welspun India Ltd has said that it has allotted 90.79 lakh equity shares to Dunearn Investments (Mauritius) Pte Ltd, a wholly owned subsidiary of Temasek Holdings of Singapore at a price of Rs130.25 per share, aggregating Rs118.26 crore.

The company has also issued 16.81 lakh warrants to the Singapore firm, which will hold a 14 per cent stake in the company. The company has also allotted warrants to Welspun Wintex (7.73 lakh), Welspun Mercantile (8.40 lakh) and Welspun Trading (4.03 lakh) - all three being group companies. The warrants would carry the option to convert into equity shares at Rs130.25 per share any time within 18 months from the date of allotment.

The funds would be utilised to part finance the company's growth and expand its weaving capacity and enhance its spindle facility. The funds would also go towards brand development and retail initiatives in India and global distribution alliances.

The above expansions will be financed partly through issuance and the balance through debt at 2-3 per cent interest through TUF loans.

Post allotment, the promoters and associate companies would have a stake of 35.01 per cent and foreign institutional investors will hold 31.62 per cent. The board has also approved the purchase of 7.5 lakh shares of Welspun Zucchi Textiles Ltd (WZTL, a joint venture of the company) from the co-promoters of WZTL. It also announced that the company's Rs575 crore expansion project at Anjar, Gujarat, for terry towels, bed sheets and cotton spinning is as per schedule.

In the terry towel unit, all 96 looms have started commercial production and the company claimed to have already shipped more than 1,000 tonnes to clients in the US. The sheeting and spinning units are expected to be operational during this month.
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Allahabad Bank fixes IPO price band at Rs75-82
Mumbai: Allahabad Bank has fixed the price band for its forthcoming issue of equity shares in the range of Rs75 and Rs82.
The issue opens on April 6 and will close on April 12, said a press release from the bank. The bank proposes to issue 10-crore equity shares through the second public issue.

Of the 10-crore shares, one crore are reserved for employees and another one crore for existing shareholders. Of the eight crore shares for public issue, four crore are reserved for allotment to Qualified Institutional Buyers and 1.2-crore shares are reserved for allotment to non-institutional buyers. The remaining 2.8 crore will be allotted to retail investors on a proportionate basis. The minimum lot to be applied is for 75 shares.

The government's stake in the bank is likely to come down to 55 per cent after the public issue. The money raised through the issue will be used for further growth plans and to meet future capital requirements arising out of implementing Basel-II norms.

The book running lead managers for the issue are SBI Capital Markets, DSP Merrill Lynch, ICICI Securities, JM Morgan Stanley, Kotak Mahindra Capital and Enam Financial Consultants, the press release said.

The bank had earlier come out with an IPO in 2002, when it raised Rs100 crore.
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