Lavasa Corporation gets SEBI nod for Rs2,000 crore IPO

New Delhi: Hindustan Construction Company (HCC) today said its subsidiary, Lavasa Corporation, has been given the green signal for a Rs2,000 crore initial public offer (IPO) by the Securities and Exchange Board of India (SEBI), reports PTI.

"... Lavasa Corporation Ltd, subsidiary company of HCC, has received observation letter from SEBI for its proposed IPO," HCC said in a filing to the Bombay Stock Exchange.

In September, Lavasa Corporation had filed a draft red herring prospectus (DRHP) with the market regulator for the proposed IPO.

The IPO may hit the market by November-December, depending on the date of receipt of clearances from regulatory authorities, HCC chairman Ajit Gulabchand had said earlier.

The real estate developer has roped in ICICI Securities, Kotak Mahindra Capital Company, Morgan Stanley India and Axis Bank as book running lead managers for the issue.

HCC holds a stake of about 65% in Lavasa, while Gautam Thapar-controlled Avantha Group is the second-largest shareholder with a 16% stake.

Other shareholders include Venkatesh Hatcheries with a 13% stake and Pune-based investor, Vinay Maniar, who holds a 6% stake in the company.

Lavasa is a planned hill city being developed by HCC near Pune. The master plan for Lavasa was drawn up by internationally renowned design consultant HOK of the USA.

The hill township has been planned to house a permanent population of around three lakh, as well as the expected arrival of 20 lakh tourists every year.

The first of the five towns - Dasve - is slated to be ready by 2010-11.


RIL group looking at partnerships with US varsities: Mukesh

New York: Reliance Industries (RIL) chairman Mukesh Ambani has said that his group is in the process of finalising partnerships with many US universities for establishing a world-class varsity in India, reports PTI.

Billionaire Mr Ambani's wife Nita Ambani is leading the efforts for setting up a varsity which would be set up by RIL's philanthropy arm Reliance Foundation.

"My wife Nita is building a university of a world scale and world size and we are finalising broad partnerships with many of the American universities...," Mukesh Ambani said after receiving the Dwight D Eisenhower Global Award for leadership from the Business Council for International Understanding (BCIU).

"... We look forward to really equipping tomorrow's youth with the skills and the knowledge and the competencies that they would need in India in the coming decades," he said.

Nita Ambani in a lecture delivered at the London School of Economics (LSE) last month had said that Reliance Foundation had taken up the challenge of setting up a world class university in India.

LSE had also said that it would collaborate with Reliance Foundation for establishing world class universities in India.

"The (proposed) university will break new grounds in the use of technology and it will be a university that looks global with Indian soul," she has said.


MOIL’s South African foray could prove costly

Company plans to acquire manganese reserves in South Africa, but poor infrastructure could increase costs significantly, says an official

Manganese Ore India Limited's (MOIL ) plans to acquire vast reserves of manganese in South Africa could prove costly for the company as the country lacks infrastructure and logistic facilities, a senior MOIL official told Moneylife.

"We are in initial stage of talks. Out of 5,000 million tonnes of manganese reserves in the world, South Africa owns 4,000 million tonnes. However, there are problems of logistics, power and infrastructure and the country meets only 20% of the world's requirements even though it has 80% of the reserves. The proposed investments in that country could be costly for us," said the MOIL official.

The company is also eyeing manganese reserves in Turkey and Congo. However, the official refused to comment on the progress of the both countries' reserves.

"The company may also form a joint venture for the acquisitions overseas reserves," added the official.

MOIL Limited, which accounts for about 50% of the manganese production in the country, will launch its initial public offering (IPO) comprising 33,600,000 shares on 26th November. Media reports say that the company is likely to raise Rs1,500 crore through the IPO. The issue will close for institutional bidders on 30th November and on 1st December for retail investors. 

The government has not disclosed the price band per share, which is likely to be announced on 22nd or 23rd November, said K J Singh, chairman and managing director, MOIL Limited.

"The government will divest 10% stake in MOIL, while the Madhya Pradesh and Maharashtra governments will sell 5% each. Maharashtra and Madhya Pradesh own 9.62% and 8.81%, respectively," Mr Singh added. 

The company is setting up two ferro-alloy projects in separate joint ventures with Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) to increase the share of value-added products in the company's basket, said Mr Singh. The 50:50 joint ventures will be operational by July 2012, he added.

The joint venture with SAIL will be located at Bhillai and have capacity of 1.06 lakh tonnes with an investment of Rs400 crore,  while the RINL joint venture will take about Rs200 crore investment and have capacity of 57,000 tonnes.

The company intends to increase production capacity from 1.1 million tonnes to 1.5 million tonnes as demand from steel sector, the largest consumer of manganese, is growing rapidly, said the company. 

IDBI Capital, Edelweiss Capital and JP Morgan are the managers of the issue.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)