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.
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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• Gyscoal’s 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 taxNet worth as at the end of the year / period
• 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
50.89
0.360.10
48.65PROMOTERSPROMOTER GROUPOTHERSSHARES OFFERED AT IPO
99.10
0.71 0.19
PROMOTERSPROMOTER GROUPOTHERS
• % WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS PRE-ISSUE
• % WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS POST-ISSUE
1.52
30.94
7.73
0.98
9.72
0.46
MR MANISH SHAHMR VIRAL SHAHMRS GIRABEN SOLANKIMR ZANKARSINH SOLANKIGENERAL CAPITAL AND HOLD-ING COMPANY PVT LTDOTHERS
1.52
30.94
7.73
0.989.72
0.46
48.65
MR MANISH SHAHMR VIRAL SHAHMRS GIRABEN SOLANKIMR ZANKARSINH SOLANKIGENERAL CAPITAL AND HOLD-ING COMPANY PVT LTDOTHERSSHARES OFFERED IN IPO
75.99
23.95
0.06
PROMOTERSPROMOTER GROUPOTHERSSHARES OFFERED AT IPO
54.31
17.12
0.04
28.53
PROMOTERSPROMOTER GROUPOTHERSSHARES 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 LACS770 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 STRUCTURECONTD
GRAVITA INDIA• AUTHORISED CAP : Rs. 1500 LACS• ISSUED PAID UP CAP B4 IPO: 1002 LACS• ISSUED CAP AFTER IPO : 1402 LACS400 LACS FROM IPO OF WHICH • QIB : 197.5 LACS• NFI: 59.25 LACS• RETAIL INVESTORS: 138.25 LACS• EMPLOYESS: 5 LACSSHARE 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.
Name of Promoter
Date ofAllotment
/Transfer
Consideration Number ofShares
Face Value(Rs.)
Issue/Transfer Price(Rs.)
% of lock in
Dr. M.P. Agarwal
Different for shares
Cash/Bonus/Transfer
16,64,424 10 10 11.87
Mr. Rajat Agrawal
Different for shares
Cash/Bonus/Transfer
11,39,576 10 10 8.13
Name of Promoter
Date ofAllotment/Transfer
Consideration Number of
Shares
Face Value(Rs.)
Issue/Transfer
Price(Rs.)
% of lock in
Mr. Viral MShah
Different for shares
Preferential Allotment/
Bonus/Transfer
3201580 10 10 20.23
Gyscoal Alloys Ltd
Gravita India Ltd
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 contdGRAVITA1. 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 SA3. To invest in setting up manufacturing facilities at Australia, Belarus, Chile
and Mexico.4. To provide margin money for working capital requirement5. For general corporate purposes6. 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 PEREQUITY 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
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).