Unlike Emaar and Wockhardt which cut their IPO price bands, IRB Infrastructure plunged into the volatile capital market with its original price band of Rs 185-220.
As of 5 Pm, IRB issue was subscribed by 44% overall. The QIB portion was however higher at 75%. The issue closes on feb 5.
Wokhardt was yet to open its account as of 5 PM. It has revised its price band at Rs 280-310 (orig Rs 225-260)
Emaar IPO opens tomorrow with revised price band of Rs 540-630 (orig Rs 610-690)
Thursday, January 31, 2008
Wednesday, January 30, 2008
Big fight for big RPL refunds: IRB, Emaar MGF, Wockhardt in fray
MUMBAI, January 30: With a keen eye on the refunds of the mega IPO Reliance Power, at least three major companies – IRB Infrastructure Developers, Emaar MGF, Wockhardt Hospitals Ltd – are all set to dare the market volatility and enter the IPO market from tomorrow.
Refunds from India's largest IPO Reliance Power Limited are reported to be around Rs 100,000 crores. The capital market is all set to witness yet another big fight post RPL IPO – this time for the refunds of RPL application amounts. Refunds of RPL applications are expected to start hitting the bank accounts around the first week of February.
Many fresh IPOs, including that of Highways specialist IRB Infrastructure Developers Limited, Emaar MGF, a JV between Dubai-based Emaar Properties and MGF Development, and health care company Wockhardt Hospitals Ltd, are all se to vie with each to garner the RPL refunds.
While IRB and Wockhardt IPOs would open between January 31 and February 5, 2008, Emaar MGF issue opens on February 1.
Emaar MGF plans to raise Rs 7,080 crore, touted to be the second largest IPO by an Indian real estate firm. The company will offer 10.25 crore equity shares of Rs 10 face value at Rs 610 and Rs 690 per share.
IRB Infrastructure is entering the market on the strength of success of its road and highway projects. The company has recently outbid giants like Reliance Energy and L&T to win the contract for six-laning of 239 km long Dahisar-Surat section of the National Highway development Project (NHDP). With a public issue of 5,10,57,666 Equity Shares of Rs 10 each and a price band of Rs 185 to Rs 220 it targets to raise Rs 1,200 crores.
Wockhardt Hospitals Ltd it plans to raise 7.78 billion rupees through its IPO for setting up hospitals. The firm has set a price band of 280-310 rupees a share for the IPO and plans to sell
25.09 million shares. The healthcare services company is scheduled to enter the capital market on January 31 with an IPO of 25,087,097 equity shares of the face value of Rs 10 each for cash at a price to be determined through a 100 per cent book building process. The price band of the IPO has been fixed between Rs 280 and Rs 310 per share. The issue closes on February 5.
Refunds from India's largest IPO Reliance Power Limited are reported to be around Rs 100,000 crores. The capital market is all set to witness yet another big fight post RPL IPO – this time for the refunds of RPL application amounts. Refunds of RPL applications are expected to start hitting the bank accounts around the first week of February.
Many fresh IPOs, including that of Highways specialist IRB Infrastructure Developers Limited, Emaar MGF, a JV between Dubai-based Emaar Properties and MGF Development, and health care company Wockhardt Hospitals Ltd, are all se to vie with each to garner the RPL refunds.
While IRB and Wockhardt IPOs would open between January 31 and February 5, 2008, Emaar MGF issue opens on February 1.
Emaar MGF plans to raise Rs 7,080 crore, touted to be the second largest IPO by an Indian real estate firm. The company will offer 10.25 crore equity shares of Rs 10 face value at Rs 610 and Rs 690 per share.
IRB Infrastructure is entering the market on the strength of success of its road and highway projects. The company has recently outbid giants like Reliance Energy and L&T to win the contract for six-laning of 239 km long Dahisar-Surat section of the National Highway development Project (NHDP). With a public issue of 5,10,57,666 Equity Shares of Rs 10 each and a price band of Rs 185 to Rs 220 it targets to raise Rs 1,200 crores.
Wockhardt Hospitals Ltd it plans to raise 7.78 billion rupees through its IPO for setting up hospitals. The firm has set a price band of 280-310 rupees a share for the IPO and plans to sell
25.09 million shares. The healthcare services company is scheduled to enter the capital market on January 31 with an IPO of 25,087,097 equity shares of the face value of Rs 10 each for cash at a price to be determined through a 100 per cent book building process. The price band of the IPO has been fixed between Rs 280 and Rs 310 per share. The issue closes on February 5.
Sunday, January 27, 2008
IRB Infrastructure Developers Ltd IPO opens 31st January
Price band - Rs.185 to Rs.220
MUMBAI: IRB Infrastructure Developers Limited, an infrastructure and construction company in India with extensive experience in the roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets on 31st January 2008 with a public issue of 5,10,57,666 Equity Shares of Rs 10 each through 100% book building process. This includes reservation of up to 125,000 Equity Shares for subscription by eligible employees. The Issue closes on 5th February 2008 and the price band has been fixed at Rs 185 to Rs 220 per Equity Share of Rs 10 each. The Issue will constitute 15.36% of the fully diluted post-issue equity share capital of the Company. The Equity Shares are proposed to be listed on the BSE and the NSE. The company filed a Red Herring Prospectus (RHP) with the registrar of companies (ROC) on January 14th , 2008 .
The Issue has been assigned a grade of 4 (ind) out of a maximum of 5 (ind) by Fitch Ratings India Private Limited, a credit rating agency registered with the Securities and Exchange Board of India ("SEBI"), indicating that the fundamentals of the Issue are above average, relative to other listed equity shares in India. Deutsche Equities India Private Ltd is the Sole Global Coordinator and BRLM for the Issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the Issue. The Company proposes to utilize the net proceeds of the Issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the Company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
Currently, the Company's shareholders include amongst others Deutsche Bank AG, Hong Kong Branch, Jade Dragon (Mauritius) Limited, and CPI Ballpark Investments Limited. Jade Dragon (Mauritius) Limited and CPI Ballpark Investments Limited are subsidiaries of Goldman Sachs and Merrill Lynch, respectively. Further, its infrastructure projects have been financed by various leading banks and financial institutions including the State Bank of India, Canara Bank, Union Bank of India, IDBI, Bank of India, Indian Overseas Bank, UCO Bank, Andhra Bank, Corporation Bank, Bank of Baroda and the Bank of Maharashtra.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the "operational" phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements. Among these completed projects one of the project is the concession rights to the Mumbai – Pune Corridor including the Mumbai Pune Expressway upto August 2019. One of the BOT projects involves four to six laning under NHDP Phase V on the Bharuch to Surat section of NH 8 project granted by NHAI in July 2006 to IDAA, one of its SPVs. is in the "under – construction" phase
IRB Infrastructure has recently diversified into the real estate development sector and it is in the process of acquiring land in the Pune district in Maharashtra on which it proposes to develop an integrated township. The proposed township project is in its preliminary stages of planning and development and will be its first real estate development project. Currently, the Company's Land Reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the Company was Rs. 325.08 crores and it earned consolidated net profit, as restated, of Rs. 29.96 crores. In the five months ended August 31, 2007, consolidated total income was Rs. 285.26 crores and it earned consolidated net profit, as restated, of Rs. 36.38 crores in this period. . IRB Infrastructure Developers Limited is the holding company of the IRB Group. The Company was formed to fund the capital requirements of the IRB Group's initiatives in the infrastructure and construction sectors. The Company, either directly or indirectly, exercises control and direction over all of the IRB Group's corporate entities. Ideal Road Builders Private Limited (IRBPL) and Mhaiskar Infrastructure Private Limited (MIPL) are its two largest subsidiaries in the infrastructure development and construction business. MIPL is involved in the Mumbai – Pune Expressway and NH 4 BOT project, which is the largest BOT project undertaken by the IRB Group. IRBPL is involved in various BOT projects as well as funded construction projects from government entities.
MUMBAI: IRB Infrastructure Developers Limited, an infrastructure and construction company in India with extensive experience in the roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets on 31st January 2008 with a public issue of 5,10,57,666 Equity Shares of Rs 10 each through 100% book building process. This includes reservation of up to 125,000 Equity Shares for subscription by eligible employees. The Issue closes on 5th February 2008 and the price band has been fixed at Rs 185 to Rs 220 per Equity Share of Rs 10 each. The Issue will constitute 15.36% of the fully diluted post-issue equity share capital of the Company. The Equity Shares are proposed to be listed on the BSE and the NSE. The company filed a Red Herring Prospectus (RHP) with the registrar of companies (ROC) on January 14th , 2008 .
The Issue has been assigned a grade of 4 (ind) out of a maximum of 5 (ind) by Fitch Ratings India Private Limited, a credit rating agency registered with the Securities and Exchange Board of India ("SEBI"), indicating that the fundamentals of the Issue are above average, relative to other listed equity shares in India. Deutsche Equities India Private Ltd is the Sole Global Coordinator and BRLM for the Issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the Issue. The Company proposes to utilize the net proceeds of the Issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the Company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd.
Currently, the Company's shareholders include amongst others Deutsche Bank AG, Hong Kong Branch, Jade Dragon (Mauritius) Limited, and CPI Ballpark Investments Limited. Jade Dragon (Mauritius) Limited and CPI Ballpark Investments Limited are subsidiaries of Goldman Sachs and Merrill Lynch, respectively. Further, its infrastructure projects have been financed by various leading banks and financial institutions including the State Bank of India, Canara Bank, Union Bank of India, IDBI, Bank of India, Indian Overseas Bank, UCO Bank, Andhra Bank, Corporation Bank, Bank of Baroda and the Bank of Maharashtra.
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the "operational" phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements. Among these completed projects one of the project is the concession rights to the Mumbai – Pune Corridor including the Mumbai Pune Expressway upto August 2019. One of the BOT projects involves four to six laning under NHDP Phase V on the Bharuch to Surat section of NH 8 project granted by NHAI in July 2006 to IDAA, one of its SPVs. is in the "under – construction" phase
IRB Infrastructure has recently diversified into the real estate development sector and it is in the process of acquiring land in the Pune district in Maharashtra on which it proposes to develop an integrated township. The proposed township project is in its preliminary stages of planning and development and will be its first real estate development project. Currently, the Company's Land Reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
In fiscal 2007, the consolidated total income of the Company was Rs. 325.08 crores and it earned consolidated net profit, as restated, of Rs. 29.96 crores. In the five months ended August 31, 2007, consolidated total income was Rs. 285.26 crores and it earned consolidated net profit, as restated, of Rs. 36.38 crores in this period. . IRB Infrastructure Developers Limited is the holding company of the IRB Group. The Company was formed to fund the capital requirements of the IRB Group's initiatives in the infrastructure and construction sectors. The Company, either directly or indirectly, exercises control and direction over all of the IRB Group's corporate entities. Ideal Road Builders Private Limited (IRBPL) and Mhaiskar Infrastructure Private Limited (MIPL) are its two largest subsidiaries in the infrastructure development and construction business. MIPL is involved in the Mumbai – Pune Expressway and NH 4 BOT project, which is the largest BOT project undertaken by the IRB Group. IRBPL is involved in various BOT projects as well as funded construction projects from government entities.
Saturday, January 26, 2008
Making of a Highway Marathoner
IRB's Mhaiskar – a Civil engineer with Financial skill sets – emerges leader on the National Highway front
If Ratan Tata has made it big with his dream car Nano, here is some one who is making it big with highway projects. Meet Virendra Mhaiskar, CMD of IRB Infrastructure has been having road shows with a difference – bidding from one road and highway to another and winning contracts. The group had won the concession for country's first ever BOT (Build, Operate, Transfer) project – the Thane-Bhiwandi bypass – and the largest BOT – the Mumbai-Pune Expressway. Today, he manages as much as 414 km stretches of the National Highways which constitutes roughly 8% of the Golden Quadrant project.
It's a no mean achievement for a product of an engineering college from an obscure town called Airoli in Navi Mumbai. "Yes, it is like a marathon on the highway," says Mhaiskar. The competition is getting tough and interesting by the day, he says with a smile.
His road projects are also making IRB cash registers ring! IRB, in fact, today is the largest toll tax road operator in the country today collecting about Rs crore a day. It is like managing a banking operation by itself – collecting money from many toll plazas and depositing them with lender bank escrow acounts.
In fact his marathon with road projects began some 18 years ago. Upon completing his studies in 1990, Mhaiskar joined his father and took over the responsibilities of the then new sector - toll collection operations. The team set up by him then even today manages the day to day toll operations for the Company.
In the year 1993 he led the project of strengthening the Nagpur airport runway. This was his first stint in road building which was completed successfully. With reforms in road sector in 1995 and the road projects taking shape on PPP basis, Mhaiskar felt the need to put in place an investment vehicle to fund the IRB Group's various initiatives in this sector. With this in mind, IRB was promoted in 1998, which today wholly owns all its subsidiaries engaged in construction, toll road and has majority control in the real estate subsidiary .
For quite some time now, Mhaiskar has focused his attention in building large projects for IRB With a view to building excellence all around and understanding the need to possess the capacity to construct with self owned resources, he has built a large equipment bank consisting of sophisticated construction equipment required for undertaking multiple projects. "At IRB, we undertake most of our work with our own resources says mhaiskar.
Over the years, this engineer has developed Financial skill sets too. Insiders say he personally works on all bids, engages a team to do a through research on costs before filing his bid. The latest bid that IRB has won – the Dahisar-Surat stretch of the National Highway development project Phase V - stands out as a shining example of competitive bidding. IRB Infrastructure offered a revenue share of 38% followed by L&T ( 35.21%) and Reliance Energy (33.61%).
This is in sharp contrast with the bidding for Gurgaon-Jaipur section where the highest bidder ETA-KMC consortium offered a high 48.06 % revenue share, followed by GMR_Punj Loyyed consortium's 36.5 %. Here the difference between the 1st and 2nd bidders works out to a massive 11.56%. In Panipat-Jalandhar Isolex led consortium offered a revenue share of 20.14% followed by REL's 5.08%, while in Chennai-Tada L&T was the highest bidder with a revenue sharing of 17.07% followed by Ramkay Infrastructure's 14.6%.
Analysts point out that the way bids were filed for Dahisar-Surat section proves that all the three had done their respective homework well, considering the low percentage of differences between the bids. It will be interesting to watch as to how ETA_KMC will ensure the high revenue sharing of 46%.
Ask Mhaiskar for the secret of his success. "It goes to the credit of Team IRB and the blessings of my Parents. I am only a member of the team. I am fortunate to have such excellent professional teams in every section – from bidding for tenders to executing the actual work ahead of schedule."
As an observer says all business roads lead to Mumbai. But roads that lead to Mumbai are under management of IRB - The Pune-Mumbai Expressway , Thane bhiwandi bypass on one side and the Bharuch-Surat-Dahisar sections on the other.
If Ratan Tata has made it big with his dream car Nano, here is some one who is making it big with highway projects. Meet Virendra Mhaiskar, CMD of IRB Infrastructure has been having road shows with a difference – bidding from one road and highway to another and winning contracts. The group had won the concession for country's first ever BOT (Build, Operate, Transfer) project – the Thane-Bhiwandi bypass – and the largest BOT – the Mumbai-Pune Expressway. Today, he manages as much as 414 km stretches of the National Highways which constitutes roughly 8% of the Golden Quadrant project.
It's a no mean achievement for a product of an engineering college from an obscure town called Airoli in Navi Mumbai. "Yes, it is like a marathon on the highway," says Mhaiskar. The competition is getting tough and interesting by the day, he says with a smile.
His road projects are also making IRB cash registers ring! IRB, in fact, today is the largest toll tax road operator in the country today collecting about Rs crore a day. It is like managing a banking operation by itself – collecting money from many toll plazas and depositing them with lender bank escrow acounts.
In fact his marathon with road projects began some 18 years ago. Upon completing his studies in 1990, Mhaiskar joined his father and took over the responsibilities of the then new sector - toll collection operations. The team set up by him then even today manages the day to day toll operations for the Company.
In the year 1993 he led the project of strengthening the Nagpur airport runway. This was his first stint in road building which was completed successfully. With reforms in road sector in 1995 and the road projects taking shape on PPP basis, Mhaiskar felt the need to put in place an investment vehicle to fund the IRB Group's various initiatives in this sector. With this in mind, IRB was promoted in 1998, which today wholly owns all its subsidiaries engaged in construction, toll road and has majority control in the real estate subsidiary .
For quite some time now, Mhaiskar has focused his attention in building large projects for IRB With a view to building excellence all around and understanding the need to possess the capacity to construct with self owned resources, he has built a large equipment bank consisting of sophisticated construction equipment required for undertaking multiple projects. "At IRB, we undertake most of our work with our own resources says mhaiskar.
Over the years, this engineer has developed Financial skill sets too. Insiders say he personally works on all bids, engages a team to do a through research on costs before filing his bid. The latest bid that IRB has won – the Dahisar-Surat stretch of the National Highway development project Phase V - stands out as a shining example of competitive bidding. IRB Infrastructure offered a revenue share of 38% followed by L&T ( 35.21%) and Reliance Energy (33.61%).
This is in sharp contrast with the bidding for Gurgaon-Jaipur section where the highest bidder ETA-KMC consortium offered a high 48.06 % revenue share, followed by GMR_Punj Loyyed consortium's 36.5 %. Here the difference between the 1st and 2nd bidders works out to a massive 11.56%. In Panipat-Jalandhar Isolex led consortium offered a revenue share of 20.14% followed by REL's 5.08%, while in Chennai-Tada L&T was the highest bidder with a revenue sharing of 17.07% followed by Ramkay Infrastructure's 14.6%.
Analysts point out that the way bids were filed for Dahisar-Surat section proves that all the three had done their respective homework well, considering the low percentage of differences between the bids. It will be interesting to watch as to how ETA_KMC will ensure the high revenue sharing of 46%.
Ask Mhaiskar for the secret of his success. "It goes to the credit of Team IRB and the blessings of my Parents. I am only a member of the team. I am fortunate to have such excellent professional teams in every section – from bidding for tenders to executing the actual work ahead of schedule."
As an observer says all business roads lead to Mumbai. But roads that lead to Mumbai are under management of IRB - The Pune-Mumbai Expressway , Thane bhiwandi bypass on one side and the Bharuch-Surat-Dahisar sections on the other.
Subscribe to:
Comments (Atom)