Tuesday, September 22, 2009

Pipavav Shipyard fixes IPO price at Rs 58 - Issue subscribed 9 times; Most bids came in at upper end of price band - Rs 60

MUMBAI, September 22, 2009: India’s largest dockyard Pipavav Shipyard fixed the issue price at Rs 58, Rs 2 lesser than the upper end of its price band at which most of the bids through 100% book building process came in.
Reflecting tremendous confidence among investors across the board, the IPO was subscribed almost 9 times on Friday when the issue closed. Data available with the stock exchanges shows that the retail investors flocked to the IPO with the segment registering subscription three times. The QIB segment was subscribed eleven times and the non-institutional portion 15 times. The employee portion was almost fully subscribed.
Building India’s largest dry dock and world class multi-sector fabrication facility, Pipavav Shipyard hit the capital market on the last Wednesday with a bang as the issue was fully subscribed within the 1st hour.
The company targeted to raise over Rs 510 crores with the issue of over 85.45 million equity shares of Rs 10 each with a price band of Rs 55-Rs 60. The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.
JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited, Enam Securities Private Limited and SBI Capital Markets Limited, are the book running lead managers and Kotak Mahindra Capital Company Limited and Motilal Oswal Investment Advisors Private Limited are the co-book running lead managers.
Pipavav Shipyard enjoys a strong order book position of 34 ships – 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.
Pipavav Shipyard will focus on building ships for the Indian navy and coast guard. In addition, Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, and other specialty vessels such as LNG carriers.
Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.


Sunday, September 20, 2009

Euro Multivision to hit capital markets with solar back-up


MUMBAI: Seeking to diversify into solar energy space, India’s 2nd largest manufacturer of CDRs and DVDRs Euro Multivision Ltd will enter the capital market with its IPO of 8.8 million equity shares of Rs 10 each, with a price band of Rs 70-75, on September 22, 2009. The issue, which closes on September 24, 2009 is on a 100% book building process.
Of the 8.8 million shares, equity shares up to 200,000 will be reserved for the company’s employees. The net issue will constitute 36.97% of the company’s post issue paid up capital. Anand Rathi Advisors Limited are the book running lead managers.
The main purpose of the IPO is to raise resources for the company’s photovoltaic solar cell manufacturing unit in an SEZ at Bhachau in Gujarat’s Kutch district. The plant, being built at a cost of Rs 178.03 crores, will have a capacity of 40MW per year.
“This new field of business is synergistic with Company’s existing businesses and we will leverage on our core competencies in the areas of precision high technology, mass manufacturing, and project management,” said Mr Hitesh Shah, MD, Euro Multivision Limited.
“As one of the early entrants in this space, EML is well-positioned to leverage this growing business opportunity. EML is targeting one segment in the PV value chain that is most attractive from a synergy standpoint, since it leverages the company’s manufacturing competencies,” Mr Shah added.
The company has already acquired 28.75 acres of land for setting up the SEZ adjacent to the existing manufacturing unit at Bhachau, District- Kutch, Gujarat. The Company has also received its SEZ Notification on April 23, 2009 and the same was published in the Gazette of India.
As regards to the Plant & Machinery required for the proposed photovoltaic unit, the Company has a contract with OTB Solar B.V (The Netherlands), for selling and designing, delivering, installing, testing, and mechanically commissioning the Solar Cell Production Line at a fixed price of EURO 13,220,000.
The company’s diversification comes in the backdrop of increasing awareness about and reliance on renewable sources of energy, including solar photovoltaic, solar thermal, small hydro and biomass power. Under the BAU (Business As Usual) scenario the contribution of renewable forms of energy is expected to be quite modest, but a concerted effort to implement a more visionary plan could significantly alter this outcome.
Apart from reducing India’s dependence on imported fuels and the strain on the environment, some forms of renewable energy such as biomass power production and ethanol motor fuel offer the added advantage of potentially creating millions of rural employment opportunities and contributing to higher rural incomes, rather than higher outflows of foreign exchange. Tapping this potential will require conducive national policies and programmes designed to attract active participation from the private sector.
Energy is an essential building block of economic as well as overall development of the country. In an effort to meet the demands of a developing nation, the Indian energy sector has witnessed a rapid growth. Areas like the resource exploration and exploitation, capacity additions, and energy sector reforms have been revolutionized. However, resource augmentation and growth in energy supply have faced difficulties to meet the ever-increasing demands exerted by the multiplying population, rapid urbanization and progressing economy. Hence, serious energy shortages continue to plague India.
India's energy requirements are enormous and the demand is growing but our resources are limited both in physical and financial terms. It is a long term imperative that these resources are exploited optimally. India is attracting significant attention from major overseas project developers, equipment suppliers and financiers. However, there remain difficult issues to be resolved before these projects become a reality. (Source: http://www.bharatbook.com/India-Energy-Summit-2007.asp)
One of the possible solutions to this problem is Solar Energy. India receives solar energy equivalent to over 5,000 trillion kWh per year. The daily average solar energy incident varies from 4 -7 kWh per square meter depending upon the location. The annual average global solar radiation on horizontal surface, incident over India is about 5.5 kWh per square meter per day.
In India Solar Photovoltaic which is one form of Solar Energy comes under the Ministry of Renewable Energy.  As per official records, the annual turnover of the Renewable Energy Industry in the country, including the power generating technologies for Wind and other sources, has reached a level of over Rs. 30,000 million.
About Euromultivision Limited:
Euro Muiltivision Limited, part of EURO group promoted by Mr Nensi Shah, has emerged as the second largest company manufacturing CDRs and DVDRs (Source: Optical Disk Manufacturers Welfare Association). EURO group, started in 1995, that has presence across multi products such as Vitrified & Ceramic Tiles, Agglomerated Marble, Aluminium Section, Aluminium Composite Panels (Bond), Hardware & Sanitary ware Fittings, Plywood, Veneers, Laminates, Mica, Canfor, Imported Furniture, Sponge Iron, CDR, DVDR, Glass Articles, Dry Battery Cell and Wooden Flooring and spread over various parts of India.
Euro Multivision limited was incorporated on April 29, 2004 and has set up a plant for the manufacture of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). It has commenced commercial production in April, 2005 with five manufacturing lines having an installed capacity of 720 lac units of CDRs and 72 lac units of DVDRs a year. After successfully operating five lines in the first year of its commercial operation, the company expanded the capacity by adding another five manufacturing lines in the second half of financial year 2006-07 taking the total to 10 manufacturing lines with a total installed capacity of CDRs to 1800 lac units a year. These lines are interchangeable and are convertible to manufacture DVDR as and when the requirement arises. Also these lines are compatible for manufacturing of pre recorded CD’s and DVD’s. In the same financial year, the DVDR manufacturing line was converted into CDR manufacturing line. The CDR production is fully stabilized and is operating on full capacity.
Our manufacturing facility is situated at Taluka Bhachau, District- Kutch, Gujarat. Our manufacturing facility is fully automated with least human intervention, which ensures international quality standards with optimum utilization of installed capacities. The major parts of the said manufacturing facility are procured from VDL ODMS B.V, Netherlands which is one of the leading suppliers for CDR manufacturing technology. Further, our manufacturing facility operates in Class 10000 (class 10,000 clean rooms, which enable us to produce clean, sterile, aseptic and dust-free products and components) environment and is completely powered by our Captive power plant for uninterrupted power supply.

Saturday, September 19, 2009

Pipavav Shipyard IPO subscribed 8.24 times amid strong retail response

MUMBAI: Reflecting the mood upbeat among investors across the board, the IPO of India’s largest dockyard Pipavav Shipyard was subscribed 8.24 times with the retail segment getting subscribed more than twice.

While the counting was still on till late in the evening yesterday, data available with the stock exchanges shows that the retail investors flocked to the IPO with the segment registering subscription 2.70 times. The QIB segment was subscribed 10.63 times, HNI-14.80 times. The employee portion was also fully subscribed.

Building India’s largest dry dock and world class multi-sector fabrication facility, Pipavav Shipyard hit the capital market on Wednesday with a bang as the issue was fully subscribed within the 1st hour.

The company targeted to raise over Rs 510 crores with the issue of over 85.45 million equity shares of Rs 10 each with a price band of Rs 55-Rs 60 through a 100% book building process. The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.

JM Financial Consultants Private Limited, Citigroup Global Markets India Private Limited, Enam Securities Private Limited and SBI Capital Markets Limited, are the book running lead managers and Kotak Mahindra Capital Company Limited and Motilal Oswal Investment Advisors Private Limited are the co-book running lead managers.

Pipavav Shipyard enjoys a strong order book position of 34 ships – 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.

Pipavav Shipyard will focus on building ships for the Indian navy and coast guard. In addition, Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, and other specialty vessels such as LNG carriers.

Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.

Wednesday, September 16, 2009

Pipavav Shipyard IPO opens with a bang - Issue fully subscribed within 1st hour

MUMBAI, September 16, 2009: The IPO of India’s largest dockyard Pipavav Shipyard opened with a bang today with the issue getting fully subscribed within the 1st hour. According to information available with the stock exchanges, the issue was subscribed nearly 2.67 times by 5 PM today.

Building India’s largest dry dock and multi-sector fabrication facility, Pipavav Shipyard hit the capital market targeting to raise over Rs 510 crores. The issue of over 85.45 million equity shares of Rs 10 each with a price band of Rs 55-Rs 60 through a 100% book building process closes on Friday.

The company yesterday received commitment of Rs 92 crores from six top anchor investors ahead of the IPO yesterday. The anchor investors - Batterymarch Financial Management Inc. A/C Legg Mason Emerging Markets Trust, Commonwealth Equity Fund Limited, California Public Employee’s Retirement System managed by Batterymarch Financial Management Inc, GI India II, India Diversified (Mauritius) Limited and Marshal India Select Fund Limited - subscribed to the IPO at Rs 60 each - the higher end of the price band.

The company intends to use the IPO proceeds for Construction of facilities for shipbuilding, ship repair and the Offshore Business among other things.

Pipavav Shipyard enjoys a strong order book position of 34 ships – 22 Panamax size huge dry bulk carriers for 3 European shipping companies and 12 OSVs for ONGC. It has also bid for 7 naval vessels.

Pipavav Shipyard also intends to focus on building ships for the military and the government, initially focusing on vessels for the Indian navy and coast guard. In addition, Pipavav Shipyard intends to utilize its shipbuilding facilities to repair a wide range of vessels, including VLCCs and OSVs, as well as naval, coast guard and other specialty vessels such as LNG carriers.

Its dry dock, measuring 662 meters in length and 65 meters in width, is capable of accommodating ships of up to 400,000 DWT and/or multiple combinations of smaller vessels including vessels catering to offshore activities such as offshore supply vessels (OSV), anchor handling tug supply vessels and multi-purpose support vessels. Installation of two Goliath cranes, each having a lifting capacity of up to 600 tonnes, is also in progress.