Orchid plans IPO to fund expansion
Chennai: Royal Orchid Hotels, which has a chain of five star and four star hotels in Karnataka, plans to open hotels at Pune and Hyderabad soon.

The company has taken a hotel on a long term lease in Pune, and after renovation will open it as a four-star 100 room hotel. In Hyderabad also the company's subsidiary plans to do the same.

The company is also planning to acquire properties in New Delhi, Mumbai and Chennai to start four or five star hotels. All these plans are expected to cost Rs.77 crore.

To fund the expansion plan, the company would be coming up with an initial public offer of 68 lakh shares of Rs10 each through a book building process. The price band will be at Rs.165 per share of Rs.10, he said.
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Kinetic Motors offloads 11.1 pc stake to Sanyang
Mumbai: Pune based two-wheeler manufacturer Kinetic Motors has offloaded an 11.1 per cent stake to Taiwan-based Sanyang Industry Company (SYM) for Rs13.63 crore. The company's board of directors has recommended a preferential allotment of 20.65 lakh equity shares priced at Rs66 each worth Rs13.63 crore to SYM as per Securities and Exchange Board of India (SEBI) guidelines.

The allotment would amount to giving SYM an 11.1 per cent stake of the enhanced capital of Kinetic Motor Company. The company has also entered into a technical collaboration with SYM for technology and manufacturing of its models in India.

SYM has a formidable research and development set up to produce world-class two-wheelers and has developed models from 50 to 500 cc, including electric scooters and fuel injection technology vehicles, it said.
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Adhunik Metals plans IPO
Mumbai: Steel products maker, Adhunik Metaliks in order to part finance its Rs437 crore project to manufacture special and auto grade steel and stainless steel, is planning an IPO. The company has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for the initial public offer worth Rs100 crore.

The project envisages backward and forward integration in the value chain that would enable the company to emerge as a price competitive player in the special steel and stainless steel segment, it said.

At least 50 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), and five per cent of the QIB portion shall be available for allocation to mutual funds only. The remaining QIB portion shall be available for allocation to the QIB bidders including mutual funds, it said. Fifteen per cent of the net issue will be available for allocation to non-institutional investors and up to 35 per cent of the net issue will be available for allocation to retail investors, the company said.
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Subex Systems issues bonus shares in 1:1 ratio
Mumbai: Subex Systems, a telecom software product company, said it would issue bonus shares in the ratio of 1:1. The board of directors have approved the allotment of 10,878,784 equity shares as bonus issue in the ratio 1:1.

Consequent to the allotment, the paid up equity share capital of the company has gone up to Rs21.75 crore from Rs10.8 crore, it said.
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M&M Financial plans public issue
Mumbai: Mahindra & Mahindra Financial Services, the non-banking finance arm of Mahindra & Mahindra proposes to enter the capital market with a public issue of two crore equity shares of Rs10 each, at a price to be decided through book-building process.

The issue comprises a fresh issue of one crore equity shares of Rs10 each and an offer for sale of one crore equity shares by existing shareholders, it said, adding the equity shares are proposed to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Mahindra Finance is in the business of financing purchase of utility vehicles and tractors manufactured by Mahindra & Mahindra and for purchase of cars of reputed manufacturers and also pre-owned vehicles.

A total of 60 per cent of the issue will be allocated to Qualified Institutional Buyers (QIB) out of which, 5 per cent will be available for allocation to mutual funds registered with SEBI and the remaining QIB portion shall be available to QIB bidders including mutual funds, subject to valid bids being received at or above the issue price.

Further, at least 10 per cent of the issue will be for allocation on a proportionate basis to Non Institutional bidders and at least 30 per cent of the issue will be for allocation to retail individual bidders, subject to valid bids being received at or above the issue price.
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