Hinduja Leyland Finance calls off IPO plan
Hinduja Leyland Finance Ltd, a subsidiary of commercial vehicle major Ashok Leyland Ltd, offering vehicle finance and loan against property, has decided to call off its plans for an Initial Public Offering (IPO). The IPO was expected to take place in the previous fiscal year. The company was expecting to raise around Rs 500 crore as equity through IPO. The IPO was planned during the last quarter of last year and with demonetisation, the company decided not to hit the market during the time. "The Board of Directors of HLFL at their meeting held on May 23, 2017 had decided to withdraw the DRHP and accordingly the DRHP had been withdrawn from Sebi on June 16, 2017," said a filing by the company in the Bombay Stock Exchange. Hinduja Group holds around 86 per cent of the shares in the company, including around 57 per cent from Ashok Leyland. Private equity firm Everstone holds around 14 per cent shares in the company. With the latest fundraising, the capital adequacy ratio is around 16 per cent. It has an asset under management of around Rs 14,000 crore. It has registered a gross income of Rs 1,450 crore and a net profit of Rs 165 crore. The AUM last year grew by around 40 per cent and this year it is expected to grow at around 35-40 per cent. The company may look at IPO at a later stage, he said. Hinduja Leyland Finance is into offering vehicle loans and loan against property, focusing mostly on the vehicle financing business.
Sequoia-backed Prataap Snacks refiles draft papers for IPO
Prataap Snacks Ltd, which makes Yellow Diamond chips, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering (IPO). One of its existing shareholders Sequoia Capital Investments II (SCI) converted the compulsorily convertible preference shares (CCPS) into equity, becoming a promoter entity and changing the overall shareholding structure. According to the new DRHP, SCI was allotted 5.79 million shares pursuant to the conversion of 96,545 CCPS held by it, as per a board resolution passed on 26 May. This resulted in SCI’s shareholding increasing to 46.71 % on pre-issue basis compared with 33.3% earlier, as per both the draft documents. Other Sequoia arms-Sequoia Capital GFIV Mauritius Investments (SCG) and Sequoia Capital India Growth Investment Holdings I (SCI-GIH)-hold 13.1% and 3.34% stake, respectively, in the company post the CCPS conversion, the fresh DRHP shows. Sequoia, through its investment arms, is now looking to sell 1.78 million shares in a part exit compared with 2.2 million shares it had proposed to sell at the time of filing of Prataap Snacks’ old DRHP. The Indore-based company, which filed its DRHP last October, plans to raise Rs 250 crore through a fresh issue of shares besides an offer for sale of 3 million shares including that by promoters and Sequoia. The company received SEBI’s nod for the IPO on 13April this year.
New India Assurance IPO likely by Dec
Public sector insurer, New India Assurance is planning to hit the capital markets for its initial public offering (IPO). The company will soon file the preliminary papers with the market regulator, Securities and Exchange Board of India (SEBI) as it plans to hit the market in the second half of this year. New India Assurance is the largest among the four PSU general insurance companies that are wholly-owned by the government. The company’s Draft Red Herring Prospectus (DRHP) for the proposed issue will be out soon. The authorised share capital of the company stood at Rs 300 crore and the paid-up share capital Rs 200 crore as on March 31, 2016. The government holds 100% stake in the company.
Capacit‘e Infraprojects receives SEBI approval for IPO
Mumbai-based Capacit'e Infraprojects has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering. The construction company had filed its draft red herring prospectus for an IPO on April 17, 2017. The company plans to raise 400 crore through its fresh issue. As per company's DRHP, the IPO proceeds will be utilised for funding working capital requirements, funding purchase of capital assets and for general corporate purposes. Axis Capital, IIFL Holdings, and Vivro Financial Services are the book running lead managers to the issue while Karvy Computershare Private Limited is the registrar.
Powerica planning Rs 800 crore issue
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Powerica, the manufacturer and installer of generators, has re-energised its initial public offer (IPO) plans and is likely to hit the primary markets soon, post witnessing a slowdown affecting its IPO talks in 2011. The company is looking to raise Rs 800 crore and market buzz suggests that it is in talks with various banks to file the draft prospectus. The generator manufacturer in 2011 had shelved its IPO plans looking at the weak secondary market conditions. It had filed its prospectus with the SEBI, eyeing to raise Rs 600 crore through issuance of 41 lakh equity shares. Standard Chartered Private Equity (SCPEL) which had invested Rs 150 crore in Powerica and bought Rs 50 crore from one of its promoters in October 2007 is planning to part-exit its 10 -year-old investment through this IPO. At present, SCPE enjoys about 11 .7% stake in the company. Though, how much it would sell is not ascertained.