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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
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
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
SHAREHOLDERS PATTERN
PROMOTERS PROMOTER GROUP 48.65 50.89 OTHERS SHARES OFFERED AT IPO 0.10 0.36
0.71 0.19
0.46
1.52
1.52
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
0.06
0.00 PROMOTERS
28.53
PROMOTERS PROMOTER GROUP 0.04 17.12 54.31 OTHERS SHARES OFFERED AT IPO
23.95
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
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.
11.87 8.13
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
Ratio
1 5 1 62
QIB
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
Gravita