Upcoming IPOs

Parsvnath Developers
Mumbai: Real estate company Parsvnath Developers is planning a public issue of 3.3 crore equity shares of Rs10 each through the book building process in the price band of Rs250 to Rs300 per share. The offer size will range from Rs908 crore to Rs1,090 crore and part of the net proceeds will be spent in various ongoing projects across India and the balance for general corporate purposes including brand building and beefing up marketing. The company has identified 12 projects across a range of various verticals (like malls, multiplexes and integrated townships and commercial complexes) of real estate development. The issue, forming 18.3 per cent of the post issue paid-up capital of the company, will open on November 6 and close on November 10. About 60 per cent of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), 5 per cent of which will be allotted on a proportionate basis to mutual funds alone. Up to 10 per cent of the net issue to public shall be available on a proportionate basis to non-institutional bidders and around 30 per cent will be for retail individual bidders.

The company is currently engaged in a variety of projects, involving 20 integrated townships, 25 residential projects, 27 commercial complexes including shopping malls, multiplexes, office space and a complete metro station in Delhi.

Info Edge India
Mumbai: Info Edge (India) Ltd, which is online recruitment, matrimonial classifieds and related services in India (through its Web sites naukri.com, jeevansathi.com, etc.), proposes to enter the capital market with a public offering of 53.24 lakh equity shares of Rs10 each through a 100 per cent book building process. This will the first time an Internet company will offer an IPO in India.

The company plans to raise Rs154.4 crore - Rs174 crore based on a price band of Rs290-320 per share. The offer constitutes 19.5 per cent of the fully diluted post issue paid-up equity capital of the company. The issue opens on October 30 and closes on November 2. The company will use issue proceeds to purchase or lease real estate for their offices, to acquire companies and use alternative delivery models such as messages through mobiles, etc. Of the total issue, 5.32 lakh equity shares will be reserved for the employees putting the net issue to the public at 47.91 lakh equity shares. At least 60 per cent of the issue will be given to qualified institutional buyers (QIBs) of which, 5 per cent will be allocated to mutual funds only; up to 10 per cent will be given to non institutional bidders and remaining 30 per cent to retail individual bidders on a proportionate basis. The company recorded total income of Rs84.06 crore for fiscal year 2006 (Rs45.12 crore). Net profit stood at Rs13.29 crore (Rs0.31 crore).

The company plans to diversify into other segments of online classifieds market like automobile, educational and industrial products and also expand in the Middle East and South Asia.
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SEBI Act may be amended
Mumbai: The Securities and Exchange Board of India Act is likely to be amended along with the proposed setting up a self-regulatory organisation (SRO) for improved monitoring of the exchanges. The amendment to the SEBI Act may give more powers to the capital market regulator and effecting changes in the settlement process, the chairman of SEBI, M. Damodaran, said here.

Damodaran addressing a seminar on `Potential Strengths of Indian Capital Market and Blueprint for Future' said issues such as the existing settlement process and disgorgement would be addressed through the amendment.

The current SEBI Act requires registration of the sub-brokers to be done by the capital market regulator. Damodaran said Sebi would want to spin off this provisions to the respective exchanges. Damodaran also said SEBI is planning to set up a SRO soon for surveillance of the capital market. A body of market experts, which would include retired members of SEBI, representatives of mutual funds, asset management companies, who can carry out surveillance he said. The term of the SRO has not yet been decided, but it could be three to five years, he said. Other changes would include simplification of procedures for coming out with rights issues and an exchange for small scale enterprises. As regards the compliance cost, he said instead of making disclosure to the BSE, NSE and SEBI, the regulator is working on uniform e-filing of disclosure details.
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GMR Ind may issue FCCBs to fund expansion
Hyderabad: GMR Industries is considering an expansion programme involving close to Rs1,000 crore investment over the next few years. To part finance the expansion programmes, the company would consider raising required funds through issue of foreign currency convertible bonds (FCCBs) or private placement of equity at an appropriate time.

The company is eying a three-fold increase in turnover to reach Rs1,000 crore by 2010-11 from the existing level of around Rs350 crore. The expansion plans include the Rs 40 crore for the ongoing sugar facility in Andhra Pradesh and the Rs273-crore Greenfield sugar complex coming up near Hubli in Karnataka, which recently attained financial closure.

The company's Business Development Group is also exploring the possibilities of setting up two more sugar complexes with co-generation and distillery in Maharashtra and Bihar at a cost of around Rs275 crore each, a medium density fibre board (MDF) manufacturing facility using surplus bagasse at a cost of Rs100 crore and an integrated dairy project at an investment of Rs20 crore to improve farmers' non-agricultural income.

In a bid to have more focus on each business, the company is hiving off its ferro alloys business into a separate company - GMR Ferro Alloys & Industries Ltd. The board has approved the demerger based on ratio determined by Deloitte Haskins & Sells. Further, the company is expecting to obtain mining lease in Orissa, which it expects would result in significant reduction in raw material cost.

The company reported a growth of 13.9 per cent in turnover at Rs79.46 crore (Rs69.76 crore) and a marginal fall in net profit at Rs10.1 crore (Rs10.86 crore) for the second quarter of the current fiscal ended September 2006.
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