SREI Infrastructure GDR lists on LSE
Kolkata: SREI Infrastructure Finance Ltd (formerly SREI International Finance) has successfully got itself listed on the London Stock Exchange (LSE), becoming the first Indian outfit in the infrastructure financing business to tap the GDR route to raise funds.

The foreign fund holding in the company post-GDR issue, will climb to 51 per cent from the earlier 22 per cent, with the balance held by promoters (22 per cent) and Indian public (27 per cent).

SREI already has an international presence through its new outfits in Germany (Bonn-based IIS International Infrastructure Services GmbH), Russia (Moscow-based ZAO SREI Leasing) and London (Aermid SREI Healthcare Finance).

The company has said that with the successful closure of the issue, which has mopped up Rs153 crore ($35 million), an additional Rs35 crore was now being added to SREI's paid-up equity, which goes up to Rs88 crore. The pre-GDR paid-up base was Rs53 crore. Company officials said that some 50 per cent of the funds, priced at $4.05, came through institutional investors in the US.

Each GDR represents 4 underlying shares of the company with a face value of Rs10 each. The proceeds will be used primarily for funding SREI's future growth by strengthening the capital base and thereby increasing its capacity to leverage itself in the market, even to the extent of 7-8 times. According to company officials, with the doubling of capital the business volumes are also expected to go up substantially. SREI expects to close 2004-05 with a business of nearly Rs1,600 crore. The GDR issue was also expected to bring down the cost of funds for SREI in the immediate future.

As for the performance during 2004-05, officials said that a 40-per cent topline growth could be expected. SREI's profit after tax for the period ended March 31, 2004 was at Rs20 crore.
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OBC sets price band for public offer
Mumbai: The Oriental Bank of Commerce (OBC) has set the price band for its second public offer of 5.8 crore equity shares at Rs235-260. The book building process will open on April 25 and close on April 29.

The proceeds of the issue would be utilised to augment the bank's capital base and adopt the requirements of the international capital adequacy framework, Basel II. Post offer the shareholding of government will come down to 51.2 per cent from the existing 66 per cent.

OBC had earlier tapped the capital market in 1994 and raised Rs387.24 crore by issuing equity shares having face value of Rs10 each at a premium of Rs50.

The bank has appointed Citigroup Global, DSP Merril Lynch, Kotak Securities, ICICI Securities and Bajaj Capital as the book running lead managers for its latest issue.
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Shoppers' Stop prices IPO at Rs210-250
Mumbai: The K Raheja Corp Group-promoted Shoppers' Shop has fixed the price band for its maiden public offer of 69.46 lakh shares between Rs210 and Rs250 per share.

The issue is slated to open on April 27 and will close on May 3.
This price band allows the company to raise a maximum of Rs173 crore. Post-issue, the promoters' stake would touch around 67 per cent from the existing 79.75 per cent holding.

The book-running lead managers are Enam Financial Consultants Pvt Ltd, JM Morgan Stanley Pvt Ltd, Kotak Mahindra Capital Company Ltd, ICICI Securities Ltd and co-book running manager is IL&FS Investmart Ltd.

Of the fresh issue of equity shares, which would form 20.21 per cent of the fully diluted post-issue paid-up capital of the company, promoters would contribute 11.9 lakh equity shares and 2 lakh shares have been reserved for the employees.

Of the net offer to public, 60 per cent equity shares have been reserved for allotment on a discretionary basis to qualified institutional buyers and 15 per cent of the net has been reserved for non-institutional investors. The balance 25 per cent would be allotted on a proportionate basis to retail investors.

Shoppers' Stop will plough the proceeds from the issue to set up 11 stores in the next two years. It also intends to utilise part of the proceeds for renovation and expansion of its existing stores.

Among the risk factors listed in the red herring prospectus, the company said there are family disputes between some of the promoters and the G.L. Raheja family. These disputes could result in claims and counterclaims, which may have an impact on the promoters of the company. However, the promoters believe that these claims may not have an impact on the company except for the dispute relating to the Bangalore premises.
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