S Chand gets Sebi go-ahead to launch IPO
Leading text book publisher S Chand and Company has received markets regulator Sebi's approval to float an initial public offering (IPO). This includes fresh issue of shares worth Rs 300 crore. Besides, the company's existing shareholders, including private equity fund Everstone and International Finance Corporation (IFC), would be offloading 6,023,236 shares through the Offer for Sale (OFS) route. The company had filed draft red herring prospectus (DRHP) with Sebi in December last year to float an initial public offer. It received Sebi's 'observation' on March 3, 2017, which is necessary for any firm to launch its public offer, as per the latest update. Proceeds from the issue would be utilised for repayment and prepayment of loans as well as for general corporate purposes. The loan amount includes those taken by its subsidiary for funding the acquisition of Chhaya Prakashani. The company offers 53 consumer brands across knowledge products and services including S Chand, Vikas, Madhubun, Saraswati, Destination Success and Ignitor.
Centre to dial Sebi for faster PSU listing
The central government is planning to write to the Securities and Exchange Board of India (Sebi) for faster approvals of offer documents to meet its objective of time-bound listing of public sector undertakings (PSUs). On an average, Sebi takes a little over two months to clear initial public offer (IPO) documents. The centre wants PSU IPOs to be cleared within a month. The move comes in the wake of the budget announcement on fast tracking the PSU listing process. Interestingly, the Department of Public Asset Management (Dipam) in a document outlining the new timeline for PSU listings has assigned just 30 days for Sebi approval. The Dipam expects the entire process to be completed within 165 days. For the first time in many years, the pipeline of PSU IPOs looks strong as nearly dozen public owned entities are planning their public issues. Cochin Shipyard and Housing and Urban Development Corporation (Hudco) have already filed their draft prospectus with Sebi. Apart from these, there are three general insurance companies (GIC) including New India Assurance which are expected to come up with their public offering in the next few months. Centre is also planning to list three companies Indian Railway Catering and Tourism Corporation (IRCTC), IRCON and Indian Railway Finance Corporation (IRFC).
Kolkata-based Bharat Road Network Plan Rs 1,200 crore IPO
Kolkata-based, Bharat Road Network Ltd. (BRNL), a Srei initiative, has filed a draft red herring prospectus with Sebi seeking permission for its initial public offering, with an issue consisting of up to 29,300,000 equity shares having a face value of Rs 10 each. The issue size is estimated to be around Rs 1,200 crore. BRNL is a road BOT (build–operate–transfer) company, focused on development, implementation, operation and maintenance of roads and highways projects. The net proceeds from the issue will be utilised towards advancing of subordinate debt in the form of an interest-free unsecured loan to its subsidiary, STPL — a SPV (special purpose vehicle), promoted by SREI Infrastructure Finance to implement a lane expansion project under a 25-year concession from the National Highways Authority of India. At present, all the projects are implemented through special purpose vehicles, either through its subsidiaries or in partnership with other infrastructure players.
Infra firm Montecarlo plans to go public
Click here to read the full report
Infrastructure company, Montecarlo, is planning to restructure its business to get listed on BSE next year, reports Mint . Its restructuring will involve a plan to create a separate entity for its real estate business while merging all its engineering, procurement and construction (EPC) operations into the parent company to simplify the company's structure. This is going to bring together all the infrastructure companies including Montecarlo Energy, Montecarlo Projects, Montecarlo Engineering and Montecarlo Infrastructure under Montecarlo Limited, which is the parent company. Its businesses which are catering to real estate, Montecarlo Realty and Montecarlo Construction, will be demerged from the company. This will simplify the structure while an IPO of the parent company will help fund both the separate entities. This restructuring is expected to be completed by March. Many infrastructure companies have gone public in the recent past. For instance, construction company, Dilip Buildcon , which was listed last year, raised Rs 664 crore and was subscribed 21 times.