The IPO of Resurgere Mines & Minerals India has received total bids for 49,44,840 equity shares as against the total issue size of 44,50,000 equity shares. The Issue has been subscribed 1.11 times as per NSE website. The issue had opened on 11th August 2008.
The price band has been fixed at Rs 263 to Rs 272 per Equity share of Rs 10 each. The Issue comprised of reservation of 250,000 Equity shares for eligible employees, leaving the net issue to the public of 4,200,000 Equity shares. The net issue would constitute 14.72% of the post issue paid-up capital of the Company.
Motilal Oswal Investment Advisors Pvt. Ltd is the BRLM for the Issue and PL Capital Markets Pvt. Ltd and Ashika Capital Ltd are the Co-BRLMs for the Issue. The Equity shares are proposed to be listed on BSE and NSE.
The Company proposes to utilize the net proceeds of the Issue to part finance its plan for purchase of Plant and Machinery valued at Rs 1,285.64 million for setting up of its own extraction and crushing facilities at the mines and purchase of six railway rakes worth Rs 1,163.60 million to set up own logistics infrastructure facilities, besides meeting margin money requirement for working capital.
The Company proposes to part finance the cost through term loans of Rs 860 million to be raised from banks, Rs 430 million through Private Equity funding from Merrill Lynch International and Rs 137.30 million through Pre-IPO allotment. Merrill Lynch International holds 3,000,000 Equity shares, India Business Excellence Fund-I holds 910,000 Equity shares, IL&FS Trust Co. Ltd ( Trustees of Business Excellence Trust-India Business Excellence Fund ) hold 402,500 Equity shares, Mr Motilal Oswal hold 250,000 Equity shares and Mr. Raamdeo Agarwal holds 200,000 Equity Shares in the Company.
Presently, the extraction and processing activities of Resurgere Mines & Minerals India Ltd at existing operational mining locations are outsourced to various service providers. In order to reduce its operational costs and to increase its volumes the Company intends to deploy own machinery, labour and other material resources at its existing mining locations as well as at newer mining locations that it purport to undertake.
Further, to facilitate easy movement of its products, the Company proposes to acquire six railway rakes for providing the same to railway authorities under the Wagon Investment Scheme. Under the Scheme, on handing over the purchased rakes to the railways, the Company would be provided with an assured supply of 4 rakes per month against each rake. Additionally, the Company will be entitled to a freight rebate of 10%. Furthermore, it will also be eligible to get additional 2 rakes per month against each rake given by it without freight rebate.
Resurgere Mines & Minerals India Ltd has a diverse product range which includes various forms of iron ore such as Lump ore, Size ore, Calibrated Lump ore (CLO) and iron ore fine etc. and bauxite.
Source: Moneycontrol.com
Wednesday, August 13, 2008
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