Topsgrup planning 400-crore IPO for domestic acquisitions

MUMBAI: Security services provider Topsgrup, which counts billionaire investor Rakesh Jhunjhunwala and private equity funds ICICI Venture and Everstone Capital among investors, is planning to raise 400 crore through an initial public offering , or IPO, in six months, according to investment bankers with knowledge of the company's plans to raise funds.

The IPO, which will comprise a fresh issue of shares and an offer for sale, could set a benchmark in terms of the valuation for similar firms in the industry waiting to tap the primary market this year.

The company is close to appointing merchant bankers and is in talks with JM Financial , IIFL, Kotak Investment Banking and Enam for the issue, investment bankers said. The offer for sale will pave the way for part exit of some of the marquee investors.

Jhunjhunwala had earlier adopted the same route in another firm A2Z Maintenance where he had exited partly through the company's IPO.

The Mumbai-headquartered company will use the proceeds for strategic acquisitions in the domestic market to increase its market dominance.

"The company is planning to launch its IPO this year," Topsgrup's global chairman Diwan Rahul Nanda said. "It will be difficult to give any timeline and financial details now. The money raised through the IPO will be used to part fund possible acquisitions, predominantly in India. The additional money required for the buyouts will come from internal accruals," he said.

Tops Security, the flagship company of Topsgrup, is the first security firm in India to secure private equity funding in 2007. ICICI Venture invested 115 crore for a 13.66% equity stake, while Indivision India (now Everstone Capital), increased its stake in the company to 7.08% from 4.11% with an additional investment of 25 crore. Rakesh Jhunjhunwala & Associates, who invested in 2005, has a 10.41% stake.

In 2008, Topsgrup acquired a 51% stake in a leading UK security service provider, The Shield Guarding Company, for close to 125 crore. In the same year, it strategically acquired Bangalore-based Guardwell Detective Services and also acquired a 14.69% stake in Chennai-based security systems integrator firm Adtech Systems.

The total aggregate revenues of the firm for the financial year 2010-11 aggregated 800 crore with an EBIDTA of 43 crore. Topsgrup caters to over 8,000 customers, including top corporates such as TATA, Reliance, ICICI Bank , HSBC, IBM, GE and Nokia.

economictimes.indiatimes.com

PTC India Financial Services IPO: 'Subscribe' to PTC India Fin IPO: Keynote

MUMBAI: Keynote Capital is of the view that PTC India Financial Services has an opportunity to tap the market in power sector and remain on a robust growth curve. It has advised to 'Subscribe' to the initial public offering.

"Power is a priority sector in India and therefore gained significant attention from the Indian government. We believe the shortage of the power for the Indian people is ever increasing and requires huge funding from the financial institutions. Therefore, we believe PFS has an opportunity to tap the market and to remain on a robust growth curve.

Considering the better financials of the company, which includes Net Interest Margin of 7.52% as of December 31, 2010 and the leverage from promoters' expertise in the power sector, we advise the investors to consider subscription for the IPO ," the report said.

The company has entered the capital market to raise between Rs 407-439 crores by issuing shares in the price band of Rs 26-28 per share. Retail investors will get a discount of Re 1 to the issue price.

The proceeds will be used to augment the capital base to meet the future capital requirement arising out of growth in the business.

The issue closes Friday.

economictimes.indiatimes.com

Lotus Eye lists below IPO price on BSE, higher on NSE

MUMBAI: Lotus Eye Care Hospital on Friday listed at Rs 40 on NSE, a premium of 5.26 per cent or Rs 2 against the issue price of Rs 38.

However, with the market moving down, the stock too moved lower to Rs 37.80. It touched a high of Rs 40 and low of 32.50 in trade so far. Around 29,22,041 shares have been traded on the NSE counter.

On BSE, the stock opened at Rs 35. It hit a high of Rs 38.45 and low of Rs 32.05. At 10:12 am, the stock was Rs 37.70 on volume of 35,94,273 shares.

The hospital is based in the south Indian city of Coimbatore. The company has raised 38 crore rupees through its 10-million share issue. The issue was subscribed 1.18 times.

The company will use the proceeds to part-finance expansion of its existing units and to set up new units in Chennai and Bangalore. Lotus' presence is currently concentrated in Coimbatore, Salem and Tirupur, all in Tamil Nadu.

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thankes by :- economictimes.indiatimes.com

KSK Energy Ventures Ltd IPO Information

»» Public Issue Open: June 23, 2008 to June 25, 2008
»» Public Issue Type: 100% Book Built Issue (Initial Public Offer IPO)
»» Public Issue Size: 5,19,17,000 Equity Shares of Rs. 10/-
»» Face Value: Rs. 10/-
»» Public Issue Price: Rs 240/- to Rs 255/-
»» Maximum Subscription Amount for Retail Investor: Rs 100,000/-
»» Listing: BSE, NSE
»» Lead Manager: Kotak Mahindra, IDFC-SSKI, Morgan Stanley & Edelweiss Capital Ltd
»» Registrar: Karvy Computershare Pvt Ltd
(Ph: +91-40-23420815 Email: mrvs@karvy.com)