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Meaning and Benefits of IPOs

An initial public offering is referred to as sale of equity of a company to the public by the promoters of the company.
Companies prefer to go for Initial Public offering due to following reasons:

Additional Capital resources for funding of projects/expansion plans. Dilution of existing promoters share holding or by venture capitalist Liquidity for shareholders. Enhances corporate image thus providing visibility.

Factors to be Consider

Eligibility Criteria:
Net Tangible assets of Rs. 3 Crores in each of the preceding 3 years. Track record of Distributable profits at least 3 out of 5 preceding years. The Company has a Net worth of Rs. 1 Crore in preceding 3 years. The proposed issue should not exceed 5 times of its Pre-issue

Management Discussion and Analysis


Overview of Indian Steel Industry Gyscoals strategy Significant development Bright Bars Factors affecting results of operations
Foreign currency risk Cost of Materials Withdrawal of Government incentives Stiff Competition

Analysis for changes in income and expenditure


Future increase in labour or material cost or prices increase in sales volume,introduction of new products or services dependence on a single or few suppliers or customers Competitive conditions

Overview of Manufacturing (Lead Metal) Industry No Significant development Factors affecting results of operations/Analysis of change in income and expenses
General economic and business conditions Ability to successfully implement the strategy of growth and expansion Factors affecting industrial activity Increases in raw materials prices Cyclical or seasonal fluctuations in the operating results Amount that the Company is able to realize from the clients Changes in laws and regulations that apply to the industry Changes in fiscal, economic or political conditions Changes in the foreign exchange control regulations, interest rates and tax laws in India

Basis for issue price


Earnings per share (Rs.) = Net profit as restated, attributable to equity shareholders Weighted Average number of equity shares outstanding during the year/period Industry P/E ratio Return on Net Worth (%) = Net profit after tax Net worth as at the end of the year / period Net Asset Value per Equity Share

Peer comparision
EPS Industry P/E RON W NAV

Glyscoal Alloys

3.81

20.5

7.13

March 31, 2009 Rs. 28.84 Sept 30, 2009 Rs. 32.63
March 31, 2009 30.82

Gravita India

15.62

25.50

64.00

Peer comparision
Face Value EPS RON W NAV

Gallant Metal
Ratnamani Metals Rajratan Global Gyscoal Alloys Limited

10
2 10 10 Face Value EPS

1.7
15.3 13.1 2.71

11.3
27.8 14.2 7.88 RON W 20.80 29.20 24.50 31.00

7.2
62.4 98.7 28.84 Equity Share Capital(in Cr.) 422.53 3.00 10.11 10.02

Hindustan Zinc Ltd. Nile Limited Pondy Oxides and Chemicals Limited Gravita India Ltd.

10 10 10 10

62.80 8.88

Legal & Other Information


Pending litigations & material Developments Govt approvals/ licensing arrangements - investment approvals (FIPB/ FDI) - technical approvals Other regulatory & statutory disclosures - authority for issue and details of resolution - prohibition by SEBI - eligibility of the issuer company Disclaimer Clauses ( SEBI, Stock exchanges , RBI if applicable , grading agency) Listing (Names of exchanges where securities are proposed to be listed) Consent of directors , auditors, solicitors, Managers to the issue, registrars, bankers to the issue and experts) Expenses of the issue Details of the fees payable to intermediaries, underwriting commission , brokerage Details of previous rights / public issue Details of other listed companies under same management Stock market data

SHAREHOLDERS PATTERN

PROMOTERS PROMOTER GROUP 48.65 50.89 OTHERS SHARES OFFERED AT IPO 0.10 0.36

0.71 0.19

PROMOTERS PROMOTER GROUP OTHERS 99.10

0.46

1.52

1.52

MR MANISH SHAH MR VIRAL SHAH

MR MANISH SHAH
9.72 MR VIRAL SHAH 30.94 0.98 MRS GIRABEN SOLANKI MR ZANKARSINH SOLANKI 7.73 30.94 GENERAL CAPITAL AND HOLDING COMPANY PVT LTD OTHERS 0.46 9.72 7.73 0.98 SHARES OFFERED IN IPO 48.65 MRS GIRABEN SOLANKI MR ZANKARSINH SOLANKI

GENERAL CAPITAL AND HOLDING COMPANY PVT LTD OTHERS

% WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS PRE-ISSUE

% WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS POST-ISSUE

0.06

0.00 PROMOTERS

28.53
PROMOTERS PROMOTER GROUP 0.04 17.12 54.31 OTHERS SHARES OFFERED AT IPO

23.95

PROMOTER GROUP OTHERS

75.99
SHARES OFFERED AT IPO

CAPITAL STRUCTURE
GYSCOAL ALLOYS AUTHORISED CAP : Rs. 1700 LACS ISSUED PAID UP CAP B4 IPO: 812.76 LACS ISSUED CAP AFTER IPO : 1582.76 LACS 770 LACS FROM IPO OF WHICH
QIB : 385 LACS NFI: 115.5 LACS RETAIL INVESTORS: 269.5 LACS SHARE PREM A/C : 5770.83 LACS

CAPITAL STRUCTURE CONTD


GRAVITA INDIA AUTHORISED CAP : Rs. 1500 LACS ISSUED PAID UP CAP B4 IPO: 1002 LACS ISSUED CAP AFTER IPO : 1402 LACS 400 LACS FROM IPO OF WHICH
QIB : 197.5 LACS NFI: 59.25 LACS RETAIL INVESTORS: 138.25 LACS EMPLOYESS: 5 LACS SHARE PREM A/C : 4600 LACS

Lock in requirements
Promoters contribution to be brought in at least one day prior to issue opening date and to be kept in Escrow account. Lock in for period of 3 years. Lock in to start from the date of allotment Last date of lock in shall be reckoned as three years from the date of commencement of commercial production or date of allotment which ever is later. Lock in of excess promoters contribution will be one year. Securities issued last to be locked in first. Entire pre issue capital other than locked in as minimum promoters contribution shall be locked in for one year. Securities issued on firm allotment basis shall be locked in for a period of one year from the date of commencement of commercial production or date of allotment whichever is later. Locked in shares by promoters may be pledged with bankers provided pledge of shares is one of the conditions. Inter se transfer of securities amongst promoters may be transferred subject to continuation of lock-in in the hands of transferee for remaining period. Inscription of Non transferability Non-Transferable along with duration.

Gyscoal Alloys Ltd


Name of Promoter Date of Allotment /Transfer Different for shares Different for shares Consideration Number of Shares 16,64,424 11,39,576 Face Value (Rs.) 10 10 Issue/ Transfer Price (Rs.) 10 10 % of lock in

Dr. M.P. Agarwal Mr. Rajat Agrawal

Cash/Bonus/ Transfer Cash/Bonus/ Transfer

11.87 8.13

Gravita India Ltd


Name of Promoter Date of Allotment /Transfer Consideration Number of Shares Face Value (Rs.) Issue/ Transfer Price (Rs.) % of lock in

Mr. Viral M Different for Shah shares

Preferential Allotment/ Bonus/ Transfer

3201580

10

10

20.23

OBJECTIVE OF COMPANIES
GYSCOAL To finance the capital expenditure for enhancing the production capctiy of melting section by 100,000 MT per annum. To meet the Long Term Working Capital requirements of the Company To meet General Corporate Purpose: and To meet Issue Expenses To provide liquidity to the shareholders To enhance brand equity

Objectives contd
GRAVITA 1. To set up additional manufacturing facilities at Jaipur and new facility at Wada, Maharashtra in India 2. To invest in overseas ventures at - Sri Lanka- Navam Lanka Limited - Senegal - Pagrik Senegal SA - Honduras - Gravita Honduras SA 3. To invest in setting up manufacturing facilities at Australia, Belarus, Chile and Mexico. 4. To provide margin money for working capital requirement 5. For general corporate purposes 6. To meet the expenses of the issue. 7. To list the equity shares on the Stock Exchanges.

Boa contd
gyscoal PUBLIC ISSUE OF 77,00,000 EQUITY SHARES OF Rs.10 EACH FOR CASH AT A PRICE OF Rs. 71 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 61 PER EQUITY SHARE) AGGREGATING Rs. 5467 LACS BY GYSCOAL ALLOYS LIMITED ('COMPANY' OR 'ISSUER' OR 'GAL') (HEREINAFTER REFERRED TO AS THE "ISSUE"). THE ISSUE WOULD CONSTITUTE 48.65% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF THE COMPANY. THE FACE VALUE PER EQUITY SHARE IS Rs. 10/-. THE ISSUE PRICE PER EQUITY SHARE IS Rs. 71 AND IT IS 7.1 TIMES THE FACE VALUE. The Issue is being made through the 100% Book Building Process wherein up to 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers, out of which 5% of the QIB Portion shall be available for.allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, at least 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Issue shall be availablefor allocation on a proportionate basis to Retail Individual Bidders

Retail Investors
Category 90 180 270 360 450 540 630 720 810 900 No. of Applications 1679 676 397 286 295 108 303 207 59 133 Total No. of Shares Applied 151,110 121,680 107,190 102,960 132,750 58,320 190,890 149,040 47,790 119,700 No. of Shares Allocated 90 90 90 90 90 90 90 92 104 115 Ratio 5:39 10:39 5:13 20:39 9:14 10:13 9:10 1:1 1:1 1:1

Lot size = 90
Total No. of Shares Allocated 19,350 15,570 13,770 13,230 17,100 7,470 24,570 19,044 6,136 15,295

990
1080 1170 1260

40
24 31 27

39,600
25,920 36,270 34,020

127
138 150 161

1:1
1:1 1:1 1:1

5,080
3,312 4,650 4,347

1350

14643

19,768,050

172

1:1

2,518,596

NI
Category 1440 2700 6750 No. of Applications 1 1 2 Total No. of Shares Applied 1,440 2,700 13,500 No. of Shares Allocated 90 90 203 Ratio 1:1 1:1 1:1 Total No. of Shares Allocated 90 90 406

7020
13500 63360 91530

1
1 5 2

7,020
13,500 316,800 183,060

210
405 1899 2743

1:1
1:1 1:1 1:1

210
405 9,495 5,486

105570
422550 500040 563310 2112660 2309940 5634000 7042230

1
2 1 1 2 2 1 2

105,570
845,100 500,040 563,310 4,225,320 4,619,880 5,634,000 14,084,460

3164
12664 14986 16882 63317 69229 168834 211033

1:1
1:1 1:1 1:1 1:1 1:1 1:1 1:1

3,164
25,328 14,986 16,882 126,634 138,458 168,834 422,066

QIB
Category No. of Shares FIIs / Banks Flls 3,850,000 MFs ICs VCs Total 3,850,000

Basis of allotment
gravita PUBLIC ISSUE OF 36,00,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF Rs. 125/PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF Rs.115/-PER EQUITY SHARE) FOR CASH AGGREGATING RS. 4500 LACS BY GRVITA INDIA LIMITED (HEREINAFTER REFFERED TO AS THE "ISSUE"). THE ISSUE WILL CONSTITUTE 26.43% 0F THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY. UPTO 50,000 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE "NET ISSUE". THE NET ISSUE WOULD CONSTITUTE 26.06% OF THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY THE ISSUE PRICE IS RS. 125/- PER EQUITY SHARE. THE FACE VALUE OF EQUITY SHARE IS RS. 10/-. THE ISSUE PRICE IS 12.5 TIMES OF THE FACE VALUE This Issue is being made in terms of regulation 26(2)(a)(i) and b(i) of SEBI (ICDR) Regulations, 2009, as amended from time to time, where by, at least 50% of the Net offer to public shall be allotted to Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded. (In case of delay, if any in refund, Gravita India Limited shall pay interest on the application money at the rate of 15% per annum for the period of delay).

Retail
Category 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 No. Of Applications 7052 5022 1596 3389 881 1062 521 4941 443 962 199 538 137 295 9821 39760 Total No. of Equity Shares applied 352600 502200 239400 677800 220250 318600 182350 1976400 199350 481000 109450 322800 89050 206500 7365750 31808000 No. of Equity Shares allocated per Applicant 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 Ratio 1 :36 1:18 1:12 1:9 5:36 1:6 7:36 2:9 1 :4 5:18 11:36 1 :3 13:36 7:18 17:41 37:84

Lot size = 50
Total No. of Equity Shares allocated 9800 13950 6650 18850 6100 8850 5050 54900 5550 13350 3050 8950 2450 5750 203600 875650

NI
Category 850 900 1000 1100 1200 1250 1500 1550 1600 . No. Of Applications 16 2 10 1 3 1 1 1 13 . Total No. of Equity Shares applied 13600 1800 10000 1100 3600 1250 1500 1550 20800 . No. of Equity Shares allocated per Applicant 50 50 50 50 50 50 50 50 50 . Ratio 1:16 1:2 1:10 FIRM 1:3 FIRM FIRM FIRM 2:13 . Total No. of Equity Shares allocated 50 50 50 50 50 50 50 50 100

.
1000000 1688000 2800000 3195000 3200000 3400000 3500000 3600000

.
1 1 2 3 7 1 1 2

.
1000000 1688000 5600000 9585000 22400000 3400000 3500000 7200000

.
5565 9394 15582 17753 17781 18892 19448 20004

.
FIRM FIRM FIRM FIRM FIRM FIRM FIRM FIRM 5565 9394 31164 53259 124467 18892 19448 40008

Employees
Total No. Of Equity Shares applied 50 500 200 49600

Category

No. Of Application s

No. of Equity Shares allocated per Applicant


50 99 199 794

Ratio

Total No. of Equity Shares allocated

50 100 200 800

1 5 1 62

FIRM FIRM FIRM FIRM

50 495 199 49228

QIB

Category No. of Equity Shares allotted

Fls/Banks

Flls

MFs

ICs

PFs

Others

Total

25391

1560685

188924

1775000

financials
The financials are prepared as per section 11 of sebi regulations

Performance

Gyscoal Alloys Ltd.


Director resigns FIIs(24.32 per cent) have dumped their holding Unaudited results shows PAT to come down from 426.48 to 491.68 Share price performance

Gyscoal

Gravita India Ltd.


Gravita Board of Directors recommend 40% Dividend Gravita Board of Directors approved Employees Stock Option Plans Gravita Acquires M/s K M Udyog, Jammu Consolidated Financial audited results show profit has gone up from 1474.73 to 1232.37(in lacs) Share price performance

Gravita

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