Simplex Projects to raise Rs 5,500 crore
Kolkata: Integrated engineering, procurement and construction services provider, Simplex Projects is entering the capital market with a public issue of 30 lakh equity shares to raise Rs5,500 crore.

The company which is focusing on the vehicular parking system business and has set up three fully automated multi-level car parking systems in Kolkata, has been roped in by the Delhi government to provide consultancy for 19 automated multi-level car parking systems.

Simplex Projects' IPO, which opens on July 10 and closes on July 13, has set a price band of Rs170-185 per share.

The proceeds from the IPO would be used for long-term working capital, to acquire plant and machinery and invest in its investment subsidiary, Simpark Infrastructure. The company has reported a profit after tax of Rs10.49 crore for the fiscal 2006-07 on a turnover of Rs136.24 crore.
Back to News Review index page  

Blackstone to acquire stake in Nagarjuna Constructions
Mumbai: Blackstone is in talks to pick up a stake in the Hyderabad-based Nagarjuna Constructions which plans to raise up to $180 million (Rs730 crore) through the sale of fresh shares to financial institutions.

The deal is conjectured to take place at a premium to the ruling market price of Rs202, the closing price on the BSE on Tuesday.

The proposed issue of fresh shares follows the company's plan to raise funds through the qualified institutional placement (QIP) route, for which Nagarjuna had received shareholder's approval earlier this year.

In March 2007, the company had informed the BSE that it would be doing a placement to institutional shareholders at a premium of Rs215 per share of Rs2 paid-up value.

The company had simultaneously taken the approval of shareholders for an issue of 25 lakh warrants to an investment company, AVSR Holdings, belonging to the promoters, also at the same price of Rs217.

At March end, the foreign fund holding in the company stood at 30.20 per cent. The promoters hold 24.5 per cent stake.
Back to News Review index page  

No IPO lock-in period for state infrastructure firms
Mumbai: With the Securities and Exchange Board of India (Sebi) amending the Disclosure and Investor Protection Guideline 2000, according to a circular it has been made easier for government-owned infrastructure companies to raise funds through IPOs by doing away with the mandatory one-year lock-in requirement of pre-issue share placements.

The move will help government companies such as PSUs, statutory authorities and special purpose vehicles (SPVs) set up by them to raise capital for their infrastructure development activities.

According to the Sebi, infrastructure sectors would include transportation, agriculture, water management, telecommunications, industrial and commercial development, power, petroleum and natural gas, housing and other segments such as mining, disaster management services, technology-related infrastructure.

Aviation, ports, roads, rail system and logistics have been included in the transportation sector. The agriculture sector comprises infrastructure-related storage facilities, construction relating to agro-processing projects and reservation and storage of perishable goods.

Currently, the Sebi rules stipulate one-year lock-in period for those who buy shares prior to an IPO by these companies.

However, the relaxation would allow government companies to attract more investors at higher valuations by selling shares as pre-IPO placements as the investors have an option to exit the company even on a shorter time-span.
Back to News Review index page  

Ankit Metal lists at 5 per cent premium
Mumbai: Kolkata-based steel manufacturer Ankit Metal and Power was listed at Rs37.90 on the Bombay Stock Exchange (BSE) - a premium of 5 pc to the offer price of Rs36 per share. The stock touched a high of Rs38.40 and a low of Rs36.50 in morning trades.

The company had entered the capital market with an initial public offering of 1.19 crore equity shares, and had raised funds mainly to part-finance an integrated steel plant in Bankura, West Bengal.
Back to News Review index page  

Sebi simplifies rules for filing results with SEs
Mumbai: The Securities and Exchange Board of India (Sebi) has directed all stock exchanges to replace the existing clause 41 of the equity listing agreement with a revised clause that will rationalise and modify the process and formats for submission of financial results to the bourses.

According to a release issued on the Sebi website, to enable investors to know the performance of companies as early as possible, the revised clause requires companies to furnish either unaudited or audited quarterly and year-to-date financial results to the exchange within one month from the end of each quarter.

Regarding publication of financial results, companies who file stand-alone as well as consolidated results will have an option to publish stand-alone or consolidated results, subject to the condition that a choice once exercised cannot be changed during the year. In case the company changes its option in any subsequent financial year, it would be required to furnish comparative figures for the previous financial year in accordance with the option exercised for the current year, the release added.
Back to News Review index page