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RCom’s Flag Telecom IPO is expected to raise about Rs5,000-Rs6,000 crore

The IPO which has opened today sets price range of $1.09-$1.32

Anil Ambani-controlled Reliance Communications (RCom) has set an indicative price range for the Singapore initial public offering of its undersea cable unit-Flag Telecom-that could raise as much as $1 billion and help the parent reduce its debt load, according to a Reuters report.

RCom is looking at listing Flag Telecom through a Singapore business trust, Global Telecommunications Infrastructure Trust (GTIT) on the Singapore Stock Exchange.

RCom is hoping its debt, which stood around $7 billion as of March 2012, through the overseas listing. The company's earlier attempts to raise funds by offloading some assets were unsuccessful.

On 12 June 2012, the Singapore Exchange Securities Trading had granted an "eligibility to list" to GTIT, subject to requisite conditions being satisfied. The IPO is expected to raise about Rs5,000-Rs6,000 crore for the company.

RCom has appointed Deutsche Bank, DBS Singapore, Standard Chartered and Industrial and Commercial Bank of China as bankers to the issue.

The IPO which has opened today will close on 16th July. The listing is set for 3rd July and the listing currency is US dollars.

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TTK Prestige reports 21% rise in Q1 net profit at Rs30.68 crore

The leading kitchen utensils manufacturer has announced its first quarter results which were in line with its historical results

TTK Prestige, a kitchen appliance maker, has reported a 21.07% year-on-year rise in net profit for the first quarter of the 2012-13 fiscal, from Rs25.34 crore to Rs30.68 crore. Its sales were up 29.76% and grew to Rs302.53 crore. However, its expenses grew at a slightly higher rate than sales, at 30.31% over the corresponding period last year. It grew from Rs197.03 crore to Rs256.75 crore.

Its sales growth (30%) has been in line with the historical three quarter y-o-y sales growth (33%). Similarly, its operating profit has grown at 29%, which is also in line with the three quarter y-o-y growth rates (29%). Its valuation factors in high growth situation continuing in the future too. Its market cap-to-operating profit at almost 20 times. This is due to the value premium most investors seem to be attaching to this company, which has grown tremendously over the ten years. Its return on equity (ROE) is stunningly high at 42% (annualised - over the last four quarters).

According to the chairman, TT Jagannathan, the company has completed the expansion of facilities for manufacture of pressure cookers in Roorki, Coimbatore and Hosur, taking the overall capacity of pressure cookers is in excess of 8 million pieces. The establishment of new facility in Gujarat is expected to be commissioned during the fourth quarter of the current fiscal. The overall capital expenditure for augmentation of existing facilities is pegged at Rs300 crore, of which Rs215 crore has been spent till date and balance will be spent by the end of the current financial year. TTK will continue to resort to transient debt funding in the near term which will be repaid out of free cash flows during the 2012-13 and 2013-14 fiscal. The total capacity for coated and bonded cookware is around 12 million.

The company had sold close to 4.5 million pressure cookers, 5 million pieces of non-stick cookware and 1 million induction cook tops during the 2011-12 fiscal.  In addition to this, the company covers 21 states and 179 towns. During the first quarter of current financial year the company commenced distribution of the Corelle range of tableware. Other ranges namely, Corningware, Pyrex, Vision and Snapware will be launched during the course of the current financial year.  

TTK Prestige is one of the world's largest manufacturers of pressure cookers and it has been forefront in introducing several innovations like Gasket Release System (GRS), Gasket Offset Device (GOD) and Double Locking System, all firsts in India.
 

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