ICICI Bank FPO ends with 11.38 times subscription

ICICI Bank's FPO ended with 11.38 times subscription. It received total bids for 112.47 crore shares from total issue size of 9.88 crore shares. (17:00 IST)

On previous day (21 June 2007), The total bids in the Qualified Institutional Buyers (QIBs) category were 48.76 crore shares. In this caregory, the Foreign Institutional Investors bid for 37.48 crore shares, Domestic Financial Institutions bid for 10.14 crore shares and Mutual Funds bid for 1.13 crore shares.

The Non Institutional Investors bid for 2.12 crore shares from total 1.40 crore shares assigned for this category.

The retail investors bid for 33.76 lakh shares, of which 30.18 lakh shares were bid at cut off price and 3.57 lakh shares were bid at fixed price.

There were 14,448 bids in the Eligible Shareholders Reservation category.

The issue has price band of Rs 885 to Rs 950 for its offer to mop up Rs 8,750 crore. The issue will close on 22 June 2007.

This is part of the combined offer, wherein the bank would issue American depository receipts (ADRs) to raise an identical amount after getting necessary clearances.

The bank has an option of retaining an additional 15% bid both from the domestic and international market, a move that could take the total issue size to to Rs 20,125 crore.

The minimum bid size will be six equity shares for retail bidders and existing retail shareholders. Bids should be in multiples of six equity shares for all bidders.

Up to 5% of the issue, or Rs 437.5 crore, is reserved for existing retail shareholders of the bank (i.e. shareholders holding up to 108 shares of the bank as of June 13, 2007). The issue has a green shoe option of Rs 1,312.5 crore.

Retail bidders, including existing retail shareholders, will be allotted shares at a discount of Rs 50 per share to the issue price determined through the book-building process.

Under payment method-1, retail bidders are required to pay Rs 250 per share on application, Rs 250 per share on allotment and the balance amount on a call which is to be issued by the bank within a period of six months from the date of allotment, and the discount would be adjusted against the call amount. Under payment method-2, retail bidders are required to pay the full bid amount less the discount, at the time of application.

Non-institutional bidders have the option to pay Rs 250 on application and the balance on allotment. Qualified institutional bidders (QIBs), who have to pay 10% of the bid amount at the time of application, have the option to pay Rs 250 less the margin amount on confirmation of allocation and the balance on allotment.

Non-resident bidders (including FIIs) will require prior approval of the Reserve Bank of India to subscribe to partly paid shares.

HDIL readies Rs2,000 cr IPO; analysts see Rs460-500 range

Close on the heels of the mega public issue of Delhi-based realtor DLF Ltd, Housing Development and Infrastructure Ltd (HDIL), a group company of the Mumbai-based mortgage firm Dewan Housing Finance Ltd, plans to enter the capital market with a public issue of around Rs2,000 crore early July. Another Delhi-based realtor, Omaxe Developers Ltd, is also expected to hit the market around the same time.

Analysts who have been crunching HDIL’s numbers in the run-up to the public issue said that the valuation and expected pricing will be comparable to DLF. Shailesh Kanani, analyst at Angel Broking said, “The expected price band of Rs460-500 for a Rs10 share will leave a lot on the table for retail investors, compared with DLF’s Rs525 for a Rs2 share.”

HDIL has around 45.5 million sq. ft under construction and an additional 66.6 million sq. ft in various stages of planning. Much of this developable area has come from the firm’s slum rehabilitation activities, under which a builder gets to build additional space in return for the free housing given to slum dwellers. The firm has undertaken nearly 40% of the slum rehabilitation projects in Mumbai city.

HDIL’s land bank of 2,500 acres spread across Mumbai, Kochi and Hyderabad has been valued at Rs21,500 crore. The valuation was done by real estate consulting firms Knight Frank India and Cushman Wakefield India.

DLF, which raised Rs9,187 crore from the market (17.5 millions shares at Rs525 per share) through its recent public issue, has a land bank of 10,522 acres and a developable area of 574 million sq. ft.

DLF, however, did not put a value to its land bank in the red herring prospectus submitted to the capital market regulator for its equity issue.

Compared with DLF’s 29 million sq. ft of residential and commercial developments, HDIL has developed 37.6 million sq. ft of residential and commercial spaces as well as 5.5 million sq. ft in slum rehabilitation. It has a total of 45.5 million sq. ft of residential and commercial spaces under development, compared with DLF’s 44 million.

However, while DLF has 37 million sq. ft of commercial and 7 million sq. ft in residential space, HDIL has 31.2 million sq. ft of residential and 7.9 million sq. ft of commercial space under development. It also 6.4 million sq. ft slumrehabilitation project under development.

“Our valuation is comparatively higher as 82% of the land bank is located in and around Mumbai city where land valuations are much higher,” said HDIL managing director Sarang Wadhwan.
HDIL has development rights to nearly one million sq. ft in Mumbai’s Bandra Kurla complex, in lieu of the slum clearance work it undertook in the area. HDIL had sold part of this space to Gujarat’s Adani Group in May 2006 at Rs2,250 crore, making this India’s biggest land deal. The company also has an additional million sq. ft of commercial development coming up at Versova, verging on the proposed metro rail’s depot. It had also acquired a 35-acre industrial estate in Bhandup in north Mumbai last year and is now developing a 16-tower residential complex along with a one million sq. ft mall.

HDIL plans to enter the hospitality space through a joint venture for a seven-star hotel on Mumbai’s Juhu beach.

Currently, 50.7% of HDIL’s business comes from infrastructure development business, while the residential complexes segment contributes 18.4% and commercial business 5.9%, with 4% coming from the retail segment. Slum redevelopment activities account for the rest.

Wadhwan does not see any change in the company’s business mix after the public offer. He said HDIL would undertake slum redevelopment projects in other cities such as Pune and Nagpur as and when opportunities arise.

According to Wadhwan, Bennett, Coleman & Co. Ltd, publisher of The Times of India and The Economic Times, has already taken a less than 1% stake in the company for an undisclosed amount in a pre-IPO placement.

According to Delhi-based Prime Database, a primary market data provider, 46 real estate companies have lined up public issues. These include Dubai-based real estate major Emaar MGF (Rs13,000 crore), Omaxe (Rs1,400crore), Bangalore’s Purvankara Developers Ltd (Rs1,300crore), and Sahara Infrastructure and Housing Ltd, the real estate arm of the Sahara group.


HDIL to raise up to Rs1,485 cr via IPO

Housing Development and Infrastructure (HDIL) announced on 21 June it will enter the capital markets with an initial public offering (IPO) to raise up to Rs1,485 crore to part-finance land acquisition for development of its ongoing projects.

The 100% book-building issue, to be opened between 28June and 3 July, would offer 29.7 million equity shares of Rs10 each at a price band of Rs430-500 each.

Of the total, there will be a green shoe option of up to 4.45 million equity shares while 600,000 shares would be reserved for eligible employees, HDIL group advisor, B M Chaturvedi, said here.

The net issue would constitute 13.86% of the fully-diluted post-issue equity capital of the company. However, if the green shoe option is also fully exercised, the dilution could be up to 15.65%.

Part of the Wadhawan Group, HDIL as of 31 May has 112.1 million sq ft of saleable area of which almost 83% is in the Mumbai Metropolitan Region. This includes 45.5 million sq ft of saleable area on which the company is currently working.

HDIL has developed 73.2 million sq ft of saleable area both for residential and commercial purposes.

Kotak Mahindra Capital Company and Enam Financial Consultants are the global coordinators and book-running lead managers to the issue.


Ankit Metal & Power IPO ends with 1.57 times subscription

Ankit Metal & Power IPO ends with 1.57 times subscription. The IPO received total bids for 1.50 crore shares from total issue size of 95.90 lakh shares. (17:00 IST)

On previous day (21 June 2007), Foreign Institutional Investors (FIIs) the only bidders in the Qualified Institutional Buyers (QIBs) category bid for 11.10 lakh shares. There were no bids by Domestic Financial Institutions and Mutual Funds.

Non Institutional Investors bid for 11.25 lakh shares. The retail investors bid for 4.70 lakh shares, of which 4.28 lakh share were bid at cut off price and 41.990 shares were bid at price.

Kolkatta-based Ankit Metal and Power manufactures sponge Iron, Steel billets and re-rolled products.