Govt To Dilute 5% Stake In BHEL; Files Documents For FPO (10-Oct-2011)

Bharat Heavy Electricals (BHEL) filed initial papers with market regulator the Securities and Exchange Board of India (SEBI) for the follow-on public offer (FPO). With this FPO government will dilute its 5% stake in the power equipment maker.

The said FPO is expected to fetch over Rs 4,000 crore, however, the volatile market conditions have made it dubious. BHEL, on August 30, had received government's nod to divest 5% of its shareholding. The government holds 67.72% stake in the entity.

Morgan Stanley, DSP Merrill Lynch (Bank of America), ICICI Securities and Kotak Mahindra Capital were appointed as bankers for BHEL's FPO. Also, to encourage public ownership in Central Public Sector Enterprises a price discount of 5% would be offered to retail investors.

BHEL's FPO is a part of government's ambitious Rs 40,000 crore disinvestment target for 2011-12. However, due to volatile market conditions, it has been able to mop up only Rs 1,162 crore through sale of shares in Power Finance Corporation.

Credit Analysis and Research (CARE), country's second largest credit rating agency, has filed draft red herring prospectus with market regulator Securities Exchange Board of India (SEBI) for an initial public offer. The company plans to issue 7,199,700 equity shares having face value of Rs 10 each through 100% Book Building Offer.

Kotak Mahindra Capital, DSP Merrill Lynch, Edelweiss Financial Services, ICICI Securities, IDBI Capital Market Services and SBI Capital Markets are book running lead managers and Karvy Computershare is the registrar to the issue.

CARE looks forward to sale the stake of existing shareholders using the issue proceeds. Thus, the entire issue proceeds will go to the selling shareholders. Its existing shareholders include IDBI Bank, Canara Bank, SBI, IL&FS, Federal Bank, IL&FS Trust, Milestone Trusteeship, ING Vysya and Tata Investment.

CARE, incorporated in April 1993, is a full service credit rating company in India. The company with its 18 years experience offers ratings to most kinds of short, medium and long-term debt instruments, such as commercial paper, bonds, debentures, preference shares and structured debt instruments; bank loans and facilities, both fund-based and non fund-based; and deposit obligations, such as inter-corporate deposits, fixed deposits and certificates of deposit; IPO grading.

Its client list includes banks and other financial institutions, private sector companies, central public sector undertakings, sub-sovereign entities, small and medium enterprises ("SMEs") and micro-finance institutions, among others.

CARE is recognized by the Capital Markets Development Authority, Republic of Maldives to carry out ratings of debt instruments and bank loans and facilities in respect of Maldivian companies, through its office in the Republic of Maldives. Presently, the company is focusing on expanding ratings business in other countries, including Nepal, where it intends to provide rating services through a joint venture in the future. It has also been recognized by Bank of Mauritius for using ratings for risk weighting of bank claims on corporates for capital adequacy purposes.

Tara Jewels Files DRHP For An IPO (07-Oct-2011)

Tara Jewels, a Rajkkot-based jewellery exporter, is planning to raise Rs 200 crore through an initial public offering (IPO) and has filed draft red herring prospectus with Securities Exchange Board of India.

Enam Securities is the book running lead manager and Link Intime India is the registrar to the issue.

The company intends to utilize the issue proceeds to meet the expenses of establishing retail stores and repay or pre-pay loans.

Tara Jewels is engaged designing to retailing of jewellery. It exports the products to Australia, China, Canada, European Union, South Africa, UAE, UK and USA. In European Union it exports to 16 countries including Austria, Germany and Switzerland. The export income has grown to 99.95% of total income.

The company's business is tri-furcated viz., manufacturing, exporting and retailing. Its portfolio of products includes gold, platinum, honeydium, and silver jewellery with or without studded precious and semiprecious stones.

M and B Switchgears' initial public offer (IPO) was subscribed 1.41 times till 1600 hrs on final day of the issue. As per the data available with the NSE, total bid of 7055220 shares were received for the issue of 5000000 shares, while 3070950 bids were received at the cut-off price.

The 100% book building issue is closing today. The company has fixed price band Rs 180 to Rs 186. D&A Financial Services is the book running lead manager and Bigshare Services is the registrar to the issue.

M and B Switchgears intends to utilize the issue proceeds to set up new grid connected 4 MWp solar photovoltaic power plant at Village Gagorni, Dist. Rajghar, Madhya Pradesh and to meet general corporate purpose.

The company is engaged in manufacturing of distribution transformers, power transformers, furnace transformers and special purpose transformers. M and B Switchgears commenced its operations in 1976 as proprietorship concern and was converted into public limited company in 2010. Thus, it is engaged in the said business since past 30 years and has been consistently strengthening its position through continuous modernisation and expansion and by acquiring latest and sophisticated technology and processes.

M and B Switchgears began with manufacturing of 550 transformers per annum, the capacity has grown gradually 5,109 transformers per annum. It commenced with capacity of 75,000 Kilo Volt Amperes (KVA) of transformer per month. At present its annual aggregate capacity is 9,00,000 KVA per annum.

The company is currently engaged in setting up a power project to generate 2 MWp through Solar PV Cells. The project is being executed at a plot area of 4.06 hectare at Survey No 13/1/1. Village Gagorni, Tehl and Distt. Rajghar, MP.

Flexituff International's initial public offer (IPO) was subscribed 0.84 times on Tuesday, October 04, 2011. As per the data available with the NSE, total bid of 5678520 shares were received for the issue of 6750000 shares, 2426720 bids were received at the cut-off price.

The issue closes on October 5. The company plans to raise Rs 100 crore from the said issue. It has set price band of Rs 145 - Rs 155. Collins Stewart Inga is the book running lead manager and Link Intime India is the registrar to the issue.

The issue proceeds will be used for expansion of manufacturing facilities at SEZ and DTA units at Pithampur, setting up of Dripper Project at Kashipur, working capital requirements and to meet general corporate purposes.

This issue has been graded by Credit Analysis & Research Limited as 3/5, indicating average fundamentals.

Flexituff International manufactures FIBC, Geo-Textile Fabric and Ground Cover, Reverse Printed BOPP Woven Bags, Special PP Bags including Leno Bags. These products are manufactured at three fully integrated and self-sufficient manufacturing units located in Pithampur (M.P.) and Kashipur (Uttrakhand).

It also has a recycling and reprocessing plant at Kandla which is used for recovering polypropylene and making various compounds of plastics. The step down subsidiary, Lakshmi Incorporated, U.S.A manufactures reclosable extruded zipper profile which is used as a secondary closure for 5-50 kg bags. Further, it has a R&D centre at Kashipur which is engaged in the research and development of various compounds for plastic products including engineering plastic, bio-degradable plastic and other new product developments.

Flexituff International, recently, has manufactured Trap bags for AmeriGlobe USA, who was contracted by the City of Fargo to provide Trap bag Container Barrier System for flood protection in eight Fargo City locations. It has manufactured 35 miles of 100 feet long, 4 and 6 feet tall Trap bags chains, which have been air freighted to different flood locations at Fargo, North Dakota and Lafayette, Los Angeles for Red river and Mississippi river.

Indo Thai Securities, a financial service provider, initial public offer (IPO) was subscribed 0.17 times on Tuesday, October 04, 2011. As per the data available with the NSE, total bid of 687120 shares were received for the issue of 4000000 shares and 653280 were received at the cut-off price.

The issue closes on October 05, 2011. The company has set a price band of Rs 70 to Rs 84. Corporate Strategic Allianz is the Book running lead manager and Sharepro Services (India) is the registrar to the issue.

The company intends to utilize the issue proceeds towards expansion and upgradation of existing branches and set up network of branches, purchase of office space for Mumbai regional office, purchase & set up of office space for corporate office, brand building & advertising, augmenting long term working capital requirement and general corporate purpose.

Indo Thai Securities commenced its operations post obtaining membership of National Stock Exchange of India in September, 1995. Currently, it offers wide range of financial products and services to its more than 7200 clients which includes capital market, Derivatives Market, Currency Derivatives Segment, Future & options, equity brokerage, with memberships in NSE, BSE MCX-SX, USE and Depository Participant of CDSL.

At present, it is focusing on increasing concentration in the existing cities as well as expand into smaller cities and towns that it believes have the potential to grow. Indo Thai Securities pose to expand by increasing the network of branches and are open to growth through the inorganic route including acquisitions.