IPO Grey Market Premium (July, 2013 Messages)

Blackstone backed Pune-based pharma company, Emcure Pharmaceuticals is looking to raise around Rs 600 crore through an initial public offering. The company has filed its draft prospectus with capital markets regulator to sell upto 29% stake in the company.

In 2006, Blackstone invested Rs 225 crore in Emcure through its investment vehicle Blackstone GPV Capital Partners Mauritius V-C Limited. The fund now holds 13.09% stake. It will sell 29% of its holding in the company (29% of the 13.09% stake it holds) and will retain the rest. Fresh equity will also be issued by the company through this public offer.

The company has appointed investment banks DSP Merrill Lynch Limited, IDFC Capital Limited and Morgan Stanley India Company Private Limited to manage the issue.

Emcure Pharmaceuticals develops, manufactures and markets a broad range of pharmaceutical products in major therapeutic areas including blood related, cardiology, pain and analgesics, HIV, gynecology, nephrology, anti-infective, and vitamins, minerals and nutrients products.

It has also recently entered the oncology and diabetes therapeutic areas. It has a pan India marketing and distribution presence with a field force of more than 4,800 personnel, as of March 31, 2013.

In April 2011, the Company acquired Heritage Pharmaceuticals Inc., a New Jersey-based generic pharmaceutical company, which provides the commercial platform through which it markets and sell portfolio of USFDA approved products in the United States. In addition, it has relationships with companies such as Pfizer, BMS, Teva and Sandoz across multiple dosage forms. It also sells its portfolio of branded generic products to the Rest of World.

Its products are currently shipped to over 65 countries. The Company has subsidiaries in Dubai, Brazil, South Africa, Singapore and Nigeria and branch offices in Russia and Morocco. It operates nine manufacturing facilities, eight of which are located in India and one in the United States.

KOCHI: Cochin Shipyard Ltd. (CSL), which is gearing up to float the country''s first indigenous aircraft carrier next month, is mulling an IPO to fund its expansion plan of around Rs 1500 crore.

CSL chairman and managing director K Subramaniam said the company hoped to offer 2.2 crore shares and raise around Rs 400 crore from the capital market. "But we are yet to submit a proposal and get the approvals," he said.

CSL plans to build a new large dry dock capable of docking offshore oil rigs, semi submersibles etc, develop an international ship repair facility at Kochi port and to take up offshore fabrication work for ONGC and other operators at a dedicated offshore location.

CSL has improved its performance for 2012-13 with turnover touching Rs 1554 crore compared with Rs 1405 crore in the previous year. Of this, the ship building income constituted Rs 1268 crore. The net profit was Rs 185 crore against Rs 172 crore in 2011-12. CSL was able to achieve good results despite a recession in the global shipping industry which is likely to continue for another two years, Subramaniam said.

Subramaniam said Union Defence Minister A K Antony will float India''s first indigenous aircraft carrier in Kochi on August 12. By June next year, the hull work will be over and the ship will be ready for trials. India is the fifth country in the world to design and build an air defence ship. CSL has been working with Indian Navy for over seven years in building the vessel.