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Mumbai, Maharashtra, July 1, 2011 Abhijeet Power Limited (the “Company”) has filed a draft red herring prospectus with the Securities and Exchange Board of India (“SEBI”) for an initial public offering (“IPO”) of its equity shares of face value of Rs. 10 each (“Equity Shares”) for cash at a price to be decided through the book-building process and aggregating to Rs. 13,750 million (the “Issue”). The promoters of the Company are Manoj Jayaswal, Abhijeet Mining Limited and Corporate Ispat Alloys Limited.
The Issue comprises a reservation of Equity Shares aggregating up to Rs. 100 million for eligible employees (the “Employee Reservation Portion”). The Issue less the Employee Reservation Portion constitutes the net issue to the public (the “Net Issue”).
The Company is considering a pre-IPO placement of up to 333,333,333 Equity Shares with various investors (“Pre-IPO Placement”) for an amount not exceeding Rs. 5,000 million. The Pre-IPO Placement will be at the discretion of the Company and at a price to be decided by the Company. The Company will complete the issuance and allotment of Equity Shares pursuant to the Pre-IPO Placement prior to filing of the Red Herring Prospectus with the RoC. If the Pre-IPO Placement is completed, the Issue size offered to the public would be reduced to the extent of such Pre-IPO Placement, subject to a minimum Issue size of 10% of the post-Issue paid-up equity share capital being offered to the public.
A discount of up to 10% to the Issue Price may be offered to Eligible Employees (“Eligible Employee Discount”). The price band, the Eligible Employee Discount and the minimum bid lot size in relation to the Issue will be decided by the Company, in consultation with the Global Coordinators and Book Running Lead Managers (“GCBRLMs”) and the Book Running Lead Managers (“BRLMs”) and advertised at least two working days prior to the Issue opening date.
At least 50% of the Net Issue shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”). Further, 5% of the QIB Portion (excluding Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. QIBs and Non-Institutional Bidders shall participate in this Issue through an Application Supported by Blocked Amount (“ASBA”) process providing details of the bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to the extent of the Bid Amount for the same. Retail Individual Bidders and Eligible Employees may also participate in this Issue through the ASBA process.
The Equity Shares offered through the Issue are proposed to be listed on Bombay Stock Exchange Limited (“BSE”) and National Stock Exchange of India Limited (‘”NSE”).
The GCBRLMs to the Issue are DSP Merrill Lynch Limited (BoFA Merrill Lynch) and Enam Securities Private Limited (“ENAM”). The BRLMs to the Issue are Axis Bank Limited, IDFC Capital Limited, SBI Capital Markets Limited and UBS Securities India Private Limited.
Disclaimer:
Abhijeet Power Limited is proposing, subject to requisite approvals, market conditions and other considerations, an initial public offer of its Equity Shares and has filed a Draft Red Herring Prospectus (“DRHP”) dated June 29, 2011 with the Securities and Exchange Board of India (“SEBI”) on June 30, 2011. The DRHP is available on the website of SEBI i.e. www.sebi.gov.in, on the stock exchanges where the Equity Shares pursuant to the Issue are proposed to be listed; i.e.; www.bseindia.com and www.nseindia.com and on the websites of the Global Coordinators and Book Running Lead Managers, being DSP MERRILL LYNCH LIMITED at www.dspml.com and ENAM SECURITIES PRIVATE LIMITED at www.enam.com; and Book Running Lead Managers being AXIS BANK LIMITED at www.axisbank.com, IDFC CAPITAL LIMITED at www.idfccapital.com, SBI CAPITAL MARKETS LIMITED at www.sbicaps.com and UBS SECURITIES INDIA PRIVATE LIMITED at www.ubs.com/indianoffers.
Investors should note that investment in equity shares involves a high degree of risk and for details in relation to the same, see section entitled “Risk Factors” of the DRHP. Any decision on whether to invest in the Equity Shares described in the DRHP may only be made after a red herring prospectus has been filed with the RoC and must be made solely on the basis of the red herring prospectus. The Equity Shares have not been and will not be registered, listed or qualified in any other jurisdiction outside India and may not be offered or sold or any Bids may not be made by persons in any such jurisdiction except in compliance with the applicable laws of such jurisdiction. The Equity Shares have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”) and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States to “qualified institutional buyers”, as defined in Rule 144A under the Securities Act in transactions exempt from the registration requirements of the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act.
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