Infosys, Nestle, MRPL, Bajaj Auto
Saturday, October 13, 2007
Buoyed by bullish response to realty firms tapping the capital market, NCR-based BPTP Ltd is also planning to raise Rs 1,500 crore through a maiden public offer early next year for part-financing its projects.
"We are planning to come out with an IPO. We will be filing the draft prospectus with SEBI this month," company's Chairman and Managing Director Kabul Chawla told PTI.
Asked about amount that the firm is plans to mop up from the capital market, Chawla said: "We plan to raise about Rs 1,500 crore from the IPO."
BPTP's plans to launch a public issue follows successful IPO's of other realty firms from NCR like DLF, Parsvnath and Omaxe. Emaar MGF also plans to come out with an IPO of Rs 6,000 crore and has recently filed the draft prospectus with market regulator SEBI.
The public issue of BPTP is expected to hit the market by second fortnight of January, company president and chief financial officer Abhinandan Chatterjee said.
"The capital expenditure over the next two years is estimated at about Rs 4,000 crore to develop various ongoing and future projects," Chatterjee said, adding that part of this would be financed through the funds raised in IPO.
When asked about the valuation that the company was looking at, Chawla said: "We have not yet decided on equity to be offloaded in IPO". The company has appointed Citibank, Kotak and Merrill Lynch as bankers to manage the IPO.
Promoters currently hold 94 per cent share in the company. Citibank's realty arm has invested Rs 322 crore for 5.9 per cent stake, which puts an enterprise value of Rs 5,475 crore. However, Chatterjee said the valuation would increase as BPTP has acquired significant land bank after that deal.
BPTP has 1,782 acres of land bank in NCR having saleable area of 108 million sq ft.
The big boys like Reliance Industries, Reliance Energy and Bharti Airtel may be the talk of the town for the wealth they have created for promoters and shareholders during the recent market rally.
But proving the adage ‘small is beautiful’, quite a few small companies which went public recently have given handsome returns to their shareholders. Many of them have more than doubled or even trebled their value over the past few months.
Of all the stocks that were listed this year, only around a fourth are trading below offer prices. The rest are quoting significantly higher than their issue prices. Some of them, like Everonn and MIC Electronics, have risen almost three-fold from their offer prices. The point here is, it’s not the much-talked about biggies (DLF, Central Bank, Motilal Oswal) that have given high returns, but it’s a bunch of small and hitherto unknown companies.
Companies like Glory Polyfilms, Ankit Metal, Evinix Accessories, which were listed recently, are now trading a good 50% above their issue prices.
Of the 80-odd issues that were listed recently, more than 50% have raised less than Rs 100 crore. The total market capitalisation of these companies was around Rs 8,000 crore based on their issue prices, which has now risen to around Rs 11,500 crore.
Investors who showed confidence in these not-so-well-known stocks have made a killing. The businesses that these companies are engaged in are also diverse — fire protection systems, flower farming, digital cinema and paper — indicating that investors are ready to bet on off-beat businesses as well. The trend is a testimony to the entrepreneurial spirit in India. And, who knows, these companies could also qualify as blue chips, if not Reliance or a Bharti.