Mumbai,Jaypee Infratech Limited (JIL or the Company), an Indian infrastructure development company and part of the Jaypee Group, will be approaching the Capital Market on April 29th, 2010, with an initial public offering of Equity Shares of Rs. 10 each for cash at a price (including a share premium) to be decided through a 100% book-building process (the Issue) and consisting of a fresh issue of equity shares aggregating up to Rs. 16,500 million and an offer for sale of 60,000,000 equity shares by Jaiprakash Associates Limited (the Selling Shareholder).
The Company is engaged in the development of the 165-kilometer Yamuna Expressway (access controlled concrete pavement expressway) connecting Greater Noida and Agra and scheduled to be completed by 2011 and development of 5 integrated townships.
The Price Band has been fixed between Rs. 102 and Rs. 117 per Equity Share. A discount of up to 5% to the Issue Price determined pursuant to completion of the Book Building Process shall be offered to Retail Individual Bidders, whose Bid Amount does not exceed Rs. 100,000 (the Retail Discount). The Issue closes on May 4th, 2010.
The Issue includes a reservation of up to 10% of the Issue Size for the eligible shareholders (the Shareholders Reservation Portion). The Issue less the Shareholders Reservation Portion is referred to as the Net Issue.
Pursuant to Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (SCRR) read with Regulation 41(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (the SEBI Regulations), this being an Issue for less than 25% of the post‑Issue share capital, is being made through the 100% Book Building Process wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs). The Company and the Selling Shareholder may, in consultation with the BRLMs, allocate up to 30% of the QIB Portion to Anchor Investors at the Anchor Investor Price on a discretionary basis, out of which at least one-third will be available for allocation to domestic Mutual Funds only. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion (being the QIB Portion less the Anchor Investor Portion). Also, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue Price. Any Bidder, other than a QIB, may participate in this Issue though the ASBA process by providing the details of their respective bank accounts in which the corresponding Bid Amounts will be blocked by the SCSBs.
This Issue has been graded by ICRA Limited and has been assigned the IPO Grade 3 indicating average fundamentals. Further, the Issue has been graded by CARE and has been assigned the CARE IPO Grade 3 indicating average fundamentals.
The Book Running Lead Managers (BRLMs) are Morgan Stanley India Company Private Limited, DSP Merrill Lynch Limited (BofA Merill Lynch), Axis Bank Limited, Enam Securities Private Limited, ICICI Securities Limited, IDFC Capital Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited.
The Equity Shares offered through the RHP of the Company are proposed to be listed on the National Stock Exchange of India Limited (NSE) and the Bombay Stock Exchange Limited (BSE).
Notes to Editor
About Jaypee
Jaypee Infratech Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares and has filed a Red Herring Prospectus (RHP) with the Registrar of Companies, Uttar Pradesh and Uttarakhand, at Kanpur. The RHP is available on the website of Securities and Exchange Board of India (SEBI) at www.sebi.gov.in as well as on the respective websites of the BRLMs at www.morganstanley.com/indiaofferdocuments, www.dspml.com, www.axisbank.com, www.enam.com, www.icicisecurities.com, www.idfcsski.com, www.jmfinancial.in, www.kmcc.co.in and www.sbicaps.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to the same, the investors should see the section titled Risk Factors of the Red Herring Prospectus.
This press release does not constitute or form part of an offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever.
This Red Herring Prospectus will not, however, constitute an offer to sell or an invitation to subscribe for Equity Shares offered hereby in any jurisdiction other than India to any person to whom it is unlawful to make an offer or invitation in such jurisdiction. Any person into whose possession this Red Herring Prospectus comes is required to inform himself or herself about, and to observe, any such restrictions.
The Equity Shares have not been and will not be registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S (Regulation S) under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons who are qualified institutional buyers (as defined in Rule 144A under the Securities Act (Rule 144A)) and (b) outside the United States to non U.S. persons in reliance on Regulation S.
These materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering to be made in the United States may be made only by means of a prospectus that may be obtained from the Company and that will contain detailed financial information about the Company and its management, as well as financial statements.
For more information:
Himanshu Kapadia, Adfactors PR, Mobile: 09821358418
