MBL Infrastructures Ltd. - Rs. 1,026 Million IPO
MOIAPL managed the Rs. 1,026 Million Initial Public Offer in December 2009 for MBL Infrastructures Limited as the sole Book Running Lead Manager. The Company was looking to raise equity funds under the IPO route to finance purchase of equipments and fund working capital for executing its rapidly growing order book. Also, enhancement in networth through equity infusion was desired to bid larger and complex projects including BOT projects as prime contractor as well as for investments in joint ventures with reputed organizations. MOIAPL assisted the Company with preparing the Offer Document, coordinating with SEBI and the stock exchanges, devising a marketing strategy for institutional, retail and HNI investors and finally listing the company successfully on the Indian bourses. Prior to the opening of the issue, MOIAPL was able to bring in Reliance Infra fund and GMO, Mauritius as Anchor Investors aggregating to maximum permitted size equal to 15% of the issue. The issue was priced at the upper end of the price band and subscribed 1.40 times. MBL Infrastructures Limited is engaged in the construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects in various states in India. The Company successfully completed its first road project of 114 kms under the Build Operate Transfer model.
Archidply Industries Limited - Rs. 489 Million IPO
MOIAPL was the sole Book Running Lead Manager to the Initial Public Offer for Archidply Industries Limited, launched in June 2008. The proceeds from the IPO were to be used for setting up a new manufacturing facility of Plain Particle Board (PPB), Pre Laminated Board (PLB), decorative plywood and medium Density Fibreboard (MDF) and margin money for working capital. MOIAPL’s role was to assist the Company in preparing the Offer Document, coordinating with SEBI and the stock exchanges, devising a marketing strategy for institutional, retail and HNI investors and finally listing the company successfully on the Indian bourses. In this issue, MOIAPL was able to showcase its ability to successfully manage and market an issue to retail and HNI clients with subscription levels of 1.06 times and 2.23 times respectively. Archidply is a manufacturer of wood panel products and decorative surfacing products in three locations, Rudrapur, Mysore and Chintamani, with a network of branches, distributors and dealers across India.
Zylog Systems Ltd. - Rs. 1,260 Million IPO
Zylog Systems Limited is a 12 year old mid-sized solutions based IT Services Company with strong domain expertise in BFSI, Telecom, Pharma & Life sciences, Retail and Manufacturing. Head quartered in Chennai. Zylog has offices in 10 cities across US, Singapore and London. The company had planned a total capex of Rs. 1,830 million to finance their 2,050 seat Offshore Development Centres in Chennai, to create a war chest for acquisitions and to meet their working capital requirement. MOIAPL proposed that the company raise funds through the IPO route. Over a nine month period, MOIAPL devised a carefully calibrated strategy to ensure that the IPO was a success. To help improve the investor profile of the company, MOIAPL advised the company to raise part of the funding requirement through pre-IPO placement of equity shares at a 23% discount to IPO price. UTI Ventures and Argonaut Ventures were inducted as shareholders in March 2007 for Rs. 438 million. Subsequently, the Company went public in July 2007 for raising further funds of Rs.1,260 million. MOIAPL was able to successfully manage and place this issue at a time when the outlook for IT companies was not favorable on account of sharp rupee appreciation vis-à-vis the US Dollar. MOIAPL leveraged its network of 1,257 business locations and its strong relationship with institutional clients and HNI clients to aggressively market the IPO. Consequently, the issue was over subscribed 75 times over all, with total applications 258,036 received. The QIB portion was oversubscribed by 85 times, HNI 138 times and retail over 34 times.
Jai Balaji Industries Limited - Rs. 1,900 Million QIP
Jai Balaji Industries Limited is an emerging metallics company in India with a capacity of 1 Million tonnes per annum. As a part of its backward integration strategy, the Company was desirous of developing iron ore and coking coal mines allotted to it. Rs. 1,900 Million of equity funds was mobilized through the QIP route. MOIAPL jointly managed this fund raise for the Company. MOIAPL actively organized roadshows for the management of the Company at Hong Kong, Singapore and London, facilitated meetings with key funds and successfully closed the issue in October 2009 within a day. The issue was subscribed by eleven investors including 9 FIIs.
Dewan Housing Finance Limited - Rs. 2,100 Million QIP
Dewan Housing Finance Limited, is among the leading specialized housing finance companies in India with a portfolio of Rs. 58 Billion. The Company was desirous of expanding its capital base to capitalize on the growing level of housing demand in India by increasing its housing loan portfolio. Dewan Housing was keen to diversify its investor profile and therefore, the QIP route for raising capital was adopted. MOIAPL as the Sole Arranger marketed the issue to a diverse set of international and domestic funds, assisted in preparing the offer documents, liased with the Stock Exchanges. The offer was open for a day in July 2009 and MOIAPL was able to get subscription from 23 investors including 15 FIIs and 8 domestic mutual funds.
Bank of India - Rs. 13.6 Billion QIP
Bank of India was contemplating raising approximately Rs.13.6 Billion from the domestic equity capital markets in the quarter ended March 2008 to augments its capital. The Bank was the first among the public sector banks to tap the capital markets using the QIP route. MOIAPL was among the team of seven merchant bankers selected by the bank to lead this prestigious issue. The targeted investor base was divided among the seven merchant banks for marketing the issue. Leveraging its investor contacts, MOIAPL along with its partners, was able to open and close the issue within a short time period thus mitigating any adverse impact on the success of the issue arising from volatility in the market.