Capital markets

State-owned lender Union Bank of India (UBI) has proposed to raise up to Rs 2,000 crores (approximately $312.4 million) through qualified institutional placement (QIP) with an initial offer of Rs 1,000 crores followed by a green-shoe option for another Rs 1,000 crores, as reported by Financial Express. The placement document was filed with the Indian stock exchanges on 12 December 2017. As a part of the transaction, equity shares of face value of INR 10 each of UBI were placed with QIBs, aggregating to INR 2000 Crores.

Trigyn Technologies, a company listed on the BSE and the NSE, has informed the Exchange regarding the scheme of reduction of share capital in the securities premium account has been approved by the NCLT by writing off the losses accumulated in its balance sheet against the amounts standing to the credit of the securities premium account of the company, as reported by Reuters.

“The Rs 1,001 crore initial public offer has received good response from investors, with the issue getting oversubscribed 2.28 times. It was the first IPO by a power exchange in the country.”, reported Moneycontrol. IEX is India’s premier power trading platform and provides an automated platform for physical delivery of electricity, enables efficient price discovery and offers participants the opportunity to trade in a variety of energy products. The issue opened for subscription during October 9-11, with a price band of Rs 1,645-1,650 per share and debuted on the bourses on October 23rd.

“The Rs 1,157-crore initial public offer (IPO) of Godrej Agrovet (GAVL) was subscribed 51.84 times times on the final day of bidding process”, reported The Economic Times. GAVL is a diversified, research & development focused agri-business company with operations across five business verticals of animal feed, crop protection, oil palm, dairy, and poultry and processed foods. The initial public offering opened for subscription on October 4th and closed on October 6th, with a price band of Rs 450-460 per share.

“Cash management company CMS Info Systems has filed preliminary papers with markets regulator Sebi to raise about Rs1,000-1,200 crore through its initial share-sale offering. The company’s initial public offer (IPO) is a pure offer for sale.” reported Livemint and Moneycontrol. CMS Info Systems, fully owned by Baring Private Equity Asia, provides cash management services, which include ATM services, and cash delivery and pick-up. Existing shareholders would sell 44.4 million equity shares, resulting in a 30% stake dilution on a post-issue basis.

Indiabulls Ventures Ltd, the financial services arm of the Indiabulls Group, approved raising Rs 2,000 crore (USD 305 million) either through rights issue of shares, to meet the funding requirements and to support future growth of consumer finance and assets reconstruction businesses carried out by the Company, through its subsidiary companies, as reported by The Economic Times and Livemint

“CMM Infraprojects is coming out with an initial public offering (IPO) of 45,45,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 40.00 per equity share.The shares will be listed on Emerge Platform of NSE. The share is priced 4 times higher to its face value of Rs 10,” reported Finalaya. The issue opened on September 29th and closed on October 4th and it was a 100% book-built issue.

“State-owned reinsurance company General Insurance Corp. of India (GIC) filed the draft red herring prospectus (DRHP) for its initial public offering (IPO). The IPO will see a total stake dilution of 14.22%, according to the DRHP available on the website of one of the investment banks managing the share sale,” reported Mint.

"SBI Life Insurance Co. Ltd on Monday filed the draft red herring prospectus for its initial public offering (IPO), joining several other insurance companies headed for the stock market. In an offer for sale, SBI and BNP Paribas will sell 80 million and 40 million shares respectively, amounting to a combined 12% stake. SBI Life is not raising any primary capital. The IPO could see SBI Life raise more than $1 billion (about Rs6,500 crore), a Bloomberg story quoted bankers as saying," reported Mint.

"The initial public offer (IPO) of Eris Lifesciences was subscribed 3.27 times on the last day of the public offer and book running lead managers to the offer are Axis Capital, Citigroup Global Markets India and Credit Suisse Securities (India)," reported Economic Times.