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HPL Electric IPO Details

Issue Open Sep 22, 2016
Issue Close Sep 26, 2016
IPO Price ₹202
Face Value ₹10
IPO Size ₹361.00 Cr
Listing At BSE, NSE
IPO Lot Size 70

HPL ELECTRIC & POWER LIMITED

Our Company was incorporated as 'HPL-Socomec Private Limited'on.May 28. 1992 as a private limited company under the Companies Act 1956 ('Companices Act 1056'). with the Registrar of Campanies, National Capital Tarrrtory of  Delhi and Haryana at New Delhi (the 'Roc'). Pursuant to a resolution of our Board of Directors dated January 21.210 and a resolution of our shareholdars dated February 13. 2010. the name of our Company was changed to HPL Electric & Power Private Limited and a fresh certificate of incorporation was issued upon change of name by the RoC on March 10.2010. Further, pursuant to conversion of our Company to a public limited company, the name of our Company was changed to'HPL Electric & Power Limited and a fresh certificate of incorporation consequent upon change of name on conversion to public limited company was issued by the RoC or December 14.2015. For details, see 'History and Certain Corporate Matters' on page 155 of the Prospectus. Corporate Identity Number; U744899DL1992PLC048945. Registered and Corporate office: 1/21. Asaf Ali Road, New Delhi 110 002, India Tal: (+91 11) 2323 4411 Fax; (+91 11) 2323 2639. Contact Person: Mr. Vivek Kumar, Company Secretary and Compliance Officer Tel: (+91 11] 2323 4411 Fax: (+91 11) 2323 2639. E-mail: hplcs@hplindia.com, Website: www.hplindia.com

PROMOTERS

MR. LALIT SETH, HAVELL'S PRIVATE LIMITED (THE 'HAVELL'S  TRADEMARK IS A PROPERTY OF HAVELL'S INDUSTRIES (NOW HAVELLS INDIA LIMITED) AND WE, OUR PROMOTERS AND MEMBERS OF OUR PROMOTER GROUP ARE NOT ASSOCIATED IN ANY MANNER WITH MAVELLS INDIA LIMITED OR ITS PROMOTERS) HPL INDIA LIMITED AND HAVELLS ELECTRONICS PRIVATE LIMITED (THE 'HAVELL'S' TRADEMARK IS A PROPERTY OF HAVELL'S INDUSTRIES (NOW HAVELLS INDIA LIMITED) AND WE,   OUR PROMOTERS AND MEMBERS OF OUR PROMOTER GROUP ARE NOT ASSOCIATED IN ANY MANNER,WITH HAVELLS INDIA LIMITED OR ITS PROMOTERS).

BASIS OF ALLOTMENT

The Equity Shares are proposed to be listed on the BSE Limited ('BSE') and the Natural Stock Exchange of India Limited ('NSE') and the trading in Equity Shares will commence on October 04,2016. INITIAL PUBLIC OFFERING OF 17,871,287 EQUITY SHARES OF FACE VALUE OF RS 10 EACH (THE 'EQUITY SHARES') OF HPL ELECTRIC & POWER LIMITED (OUR 'COMPANY' OR THE 'COMPANY' OR THE 'ISSUER') FOR CASH AT A PRICE OF RS 202 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS 192 PER EQUITY SHARE) (THE 'ISSUE PRICE') AGGREGATING TO RS 3,610 MILLION (THE 'ISSUE'). THE ISSUE SHALL CONSTITUTE 27 79% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

Issue Price

Rs 202 per Equity Share of face value of Rs 10 each. | Anchor Investor Issue Price : Rs 202 per Equity Share. | The Issue Price is 20.2 times the face value.

Risks to Investors

(I) The three BRLMs associated with the Issue have handled 20 public issues in the past three years out of which 5 issues closed below the issue price on listing date*.

(ii) The Price/Earnings ratio based on diluted EPS for the year ended March 31,2016 for the Issuer at the upper end of the Price band is as high as 25.31, based on restated standalone financials and 25.60', based on restated consolidated financials as compared to the Industry Peer's Price / Earnings ratio of 35.81 on a standalone basis and 21,18 on a consolidated basis. See 'Basis for Issue Price' on page 99 of the Prospectus.

(iii) The Return on Net Worth of the Issuer is 10.43% based on restated standalone financials and 10.34%* based on restated consolidated financials for year ended March 31,2016 as compared to Return on Net Worth of the Industry Peer which is 27.05% based on audited standalone financials and 47.26% based on audited consolidated financials for the year ended March 31,2016. See 'Basis for Issue Price' on page 97 of the Prospectus.

(iv) Average cost of acquisition of Equity Shares for the Promoters of the Company is in the range of Rs 9.61 to Rs 25.21 per Equity Share and the Issue Price for the public at the upper end of Price Band isas high as Rs 202.

#As on the date of the Red Herring Prospectus dated September 09,2016 . (EPS and RoNW figures for our Company does not include Himachal Energy Private Limited, Since it became a Subsidiary with effect  from May 9, 2016).

Bid/Issue Opened on September 22, 2016*
Bid/Issue Closed on September 26, 2016

*The Anchor investor Bid/Issue Period was one working Day prior to the Bid/issue Opening Date i. e.September 21 2016 in accordance with the Securities and Exchange Board of  India (Issue of Capital and Disclosure Requirements) Regulations. 2009 ('SEBl ICDR Ragulations').

In terms of Rule19 (2)(b)(i) of the Sacurities Contracts (Regulation) Rules, 1957. as amended, (the 'SCRR') The Issue was made for at least 25% of the post -lssue paid-up Equity Share capital of our Company. The issue is made through the Book Building Process, in compliance with Regulation 26(1) of  the SEBI ICDR Regulation wherein 50% of tha Issua has been allocated on a proportionate basis  to Qualified Institutional Buyers ('QIBs') (the 'QIB Category'). Our Company, in consultation with the Book Running Lead Managers ('BRLMs') allocated 60% of the QlB Category to Anchor Investors, on a discretionary basis (the 'Anchor Investor Portion') of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Issue Price. Further. 5% of the QIB Category (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only. The remainder was available for allocation on a proportionate basis to QIBs and Mutual Funds. subject to valid Bids being received from them at or above the issue Pries. Further, not less than 15% of the Issue was available for allocation on a proportionate baas to Non-lnstitutional Investors and not less than 35% of the Issue was available for allocation to Retail Individual Investors, in accordance with tha SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. All investors (except Anchor Investors) were permitted to participate in the Issue only through the ASBA process, For details in this regard, specific attention is  invited to 'Issue Procedure' on page 372 of the Prospectus,

The Issue received 283.737 applications for 12,10,35,880 Equity Snares (prior to technical rejections} resulting in 6,77 times subscription. The details of the applications received in the Issue from Retail Individual Investors, Non-lnstitutional Investors, QIBs (excluding Anchor invesiors) and Anchor investors are as under (before technical rejections):

SI
No
Category No.of
Applications
No. of Equity
Shares applied
No. of times
Subscribed
Amount (Rs) Shares
Reserved
A Retail Individual Bidders 2,83,609 2,26,81,190 3.63 4,58,06,24,092.00 62.54.951
C Non Institutional Bidders 97 6,82,38,870 25.46 13.78.41.19.230.00 26.80.694
D Qualifies Institutional Bidders
(Excluding Anchors)
16 2,38,05,320 6.66 4.80.86.74.640.00 35.74.257
F Anchor Investors 13 63,10,500 1.18 1,27,47,21,000.00 53.61.385
Talal 2,83,737 12,10,35,880 6.77 24,44,81,38,962.00 1,78,71,287

Final Demand

A Summary of the final demand as per the NSE and BSE as on the Bid/lssue Closing  Data at different Bid prices is as under:

SL NO BID PRICE BIDS
QUANTITY
(%)
TO  TOTAL
Cumulative
Total
% Cumulative
Total
1 175 2,13.010 0.18 2,13,010 0.18
2 176 10.500 0.01 2,23,510 0.19
3 177 5.880 0.01 2.29.390 0.20
4 178 3.290 0.00 2.32.680 0.20
5 179 1.190 0.00 2,33,870 0.20
6 180 48.300 0.04 2,82.170 9.24
7 181 3.500 0.00 2.85.670 0.24
8 182 2.660 0 00 2.88.330 0.25
9 183 630 0 00 2,88,960 0.25
10 184 420 0.00 2.89.380 0.25
11 185 21.210 0.02 3,10,590 0.26
12 186 910 0.00 3,11,500 0.27
13 187 1,750 0.00 3,13,250 0.27
14 188 1,610 0.00 3.14.860 0.27
15 189 2.520 0 00 3,17,380 0.27
16 190 90.230 0.08 4,07,610 0.35
17 191 2,100 0.00 4.09710 0.35
18 192 910 0.00 4.10.620 0.35
19 193 280 0 00 4.10.900 0.35
20 194 210 0.00 4 11.110 0.35
21 195 8.680 0.01 4.19.790 0.36
22 196 1.120 0.00 4,20.910 0.36
23 197 280 0.00 4,21,190 0.36
24 198 2380 0.00 4,23.570 0.36
25 199 700 0 00 4,24,270 0.36
26 200 18.620 0.02 4,42,890 0.38
27 201 6.300 0.01 4,49,190 0.38
28 202 9.57.95.210 81.56 9.62.44.400 81.94
29 CUTOFF 2.12.10.070 18.06 11,74,54,470 100.00
TOTAL 11,74,54,470 100.00

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange. being NSE on September 30.2016.

A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASBA Applications)

The Besis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of  Rs 202 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 3.55 times. The total number of Equity Shares Allotted in Retail Individual Bidders category is 62,54,951 Equity Shares to 89,356 successful applicants. The category-wise details of the Basis of Allotment are as under.

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% to
Total
No, of
Equity Shares
allotted per
applicant
Ratio Total No.of
Equity Share
allotted
70 2,66,705 95.74 1,86,69,350 84.14 70 417:1300 59,88,500
140 5,675 2.04 7,94,500 3.58 70 17:53 1,27.400
210 2,044 0.73 4,29,240 1.93 70 17:53 45,920
280 951 0.34 2,66,280 1.20 70 17:53 21.350
350 742 0.27 2.59.700 1.17 70 17; 53 16.660
420 284 0.09 1.10.880 0.50 70 17:53 5.950
490 624 0.22 3,05,760 1.38 70 17:53 14,000
560 144 0.05 80,640 0.36 70 17:53 3.220
630 87 0.03 54,810 0.25 70 28:87 1.960
700 229 0.08 1,60,300 0.72 70 17:53 5,110
770 55 0.02 42.350 0.19 70 16:55 1.260
840 62 0.02 52,080. 0.23 70 10:31 1.400
910 92 0.03 83,720 0.38 70 29:92 2.030
980 897 0.32 8,79,060 3.96 70 17:53 20.160
1 4:491 31
TOTAL 2,78,571 100.00 2,21,88,670 100.00 62,54,951

B. Allatment to Non-lnstitutional Bidders, (After Technical Rejections)

The Basis of Allotment to the Non-lnstitutional Bidders, who have bid at the Issue Price of  Rs  202 per Equity Share, was finalized in consultation with the NSE. This category has been subscribed to the extent of 25.45 times. The total number of Equity Shares Allotted in this category is26,80,694  Equity Shares to 82 successful applicants. The category-wise details of the Basis of  Allotment are as under:

Category No. of
Applications
Received
% of
Total
Total No. of
Equity Shares
applied
% to
Total
No, of
Equity Shares
allotted per
applicant
Ratio Total No.of
Equity Share
allotted
1050 15 16.67 15.750 0.02 70 9 :15 630
1120 1 1.11 1.120 0.00 70 1:1 70
1190 2 2.22 2,380 0.00 70 1:2 70
1400 4 4.44 5.600 0.01 70 3:4 210
1540 1 1.11 1.540 0.00 70 1:1 70
1750 1 1.11 1.750 0.00 70 1:1 70
1960 1 1.11 1.960 0.00 77 1:1 77
2100 2 2.22 4,200 0.01 82 1:1 164
 2520 1 1.11 2,520 0.00 99 1:1 99
2800 2 2.22 5.600  0.01 110 1:1 220
3010 1 1.11 3,010 0.00 118 1:1 218
3500 2 1.11 7.000 0.01 137 1:1 274
4340 1 1.11 4.340 0.01 171 1:1 171
4900 4 4.44 19,600 0.03 192 1:1 768
5880 1 1.11 5.880  0.01 231 1:1 231
9870 1 1.11 9.870 0 01 388 1:1  388
10010 2 2.22  20.020 0.03 393 1:1 786
10500 1 1.11 10.500 0.02 413 1:1 413
12390 1 1.11 12,390 0.02 487 1:1 487
13930 1 1.11 13.930  0.02 547 1:1  547
14840 2 2.22  29.680 0.04 583 1:1 1,166
15610 1 1.11 15.610 0.02 613 1:1 613
22260 1 1.11 22.260 0.03 875 1:1 875
24710 1 1.11 24.710 0.04 971 1:1 971
49000 1 1.11 49,000 0.07 1925 1:1 1,925
49490 2 2.22 96.980 0.15 1944 1:1 3.888
61880 1 1.11 61.880 0.09 2431 1:1 2,431
86590 1 1 11 86.590 0.13 3402 1:1 3,402
99050 1 1.11 99.050 0.15 3892 1:1 3.892
111370 1 1.11 1.11.370 0.16 4376 1:1 4.376
123760 1 1.11 1,23.760 0.18 4863 1:1 4.863
247450 1 1.11 2.47.450 0.36 9722 1:1 9.722
247520 1 1.11 247.520 0.36 9725 1:1 9.725
445480 1 1.11 4.45.480 0.65 17503 1:1 17,503
495040 4 4.44 19.80.160 2.90 19450 1:1 77.800
497000 1 1.11 4 97.000 0.73 19527 1:1 19.527
742560 1 1.11 7.42.560 1.09 29175 1:1 29.175
841540 1 1.11 8.41.540 1.23 33064 1:1 33.064
994000 1 1 11 9.94.000 1.46 39055 1:1 39,055
1188110 1 1 11 11.88.110 1.74 46681 1:1 46.681
1237600 3 3.33  37.12.800 5.44 48625 1:1 1.45.875
1237670 1 1.11 12,37,670 1.81 48628 1:1 48,628
1522290 1 1.11 15,22,290 2.23 59811 1:1 59,811
1785840 1 1.11 17.85.840 2.62 70166 1:1 70,166
1856400 2 2.22 37,12,800  5.44 72938 1:1 1.45.876
1978200 1 1.11 19,78,200 2.90 77724 1:1 77,724
1981000 1 1.11 19.81,000 2.90 77834 1:1 77.834
2475200 2 1.11 49,50,400 7.26 97251 1:1 1,94,502
2478000 1 1.11 24.78.000 3.63 97361 1:1 97,361
2552200 1 1 11 25.52.200 3 74 100277 1:1 1,00,277
4950470 1 1.11 49.50.470 7.26 194505 1:1 1.94,505
5034400 1 1.11 50.34.400 7.38 197803 1:1 1.97.803
5950000 2 2.22 1.19.00.000 17.44 233777 1:1 4.67.554
6188070 1 1.11 61.88.070 9.07 243129 1:1 2.43.129
6188140 1 1.11 61.88.140 9.07 243132 1:1 2.43.132
TOTAL 90 100.00 6,82,27,950 100.00 26,80,694

C. Alloment to QIBs (excluding Anchor Investors)

Allotment to QIBs, who have Bid at the issue Price of  Rs 202 per Equity Share, has been done on a proportionate basis in consultation with the NSE. This category has been subscribed to the extent of 7.90 times of Net QIB portion. As per the SEBI Regulations. Mutual Funds were Allotted 1.78.713 of the Equity Shares of Net QIB portion. available i.e. 36,74,257 Equrly Shares and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e. 33,95,544 Equity Shares on a proportionate basis. The total number of  Equity Shares Allotted in the QIB category is 35.74.257 Equity Shares, which were allotted to 18 successful Applicants. The category-wise details of the Basis of Allatmert are as under:

Category Fls/Banks Fll ICs MFs Others Total
QIB 6,77,654 12,78,116 5.90.443 8,14,607 2,13,437 35.74.257

D. Allotment to Anchor Investors

The Company and the Selling Shareholders have Aallotted 53.61.385 Equity Shares to 13 Anchor Investor Bid cum Application Forms from 8 Anchor Investors in consultation with the BRLMs In acoordance with the SEBl Regulations this represents 60.00% of the QIB Portion.

Category FIs/Banks MFs ICs VCs AIF/FPI Fll Total
Anchor - 36.28.740 - - 5,36,275 11.96.370 53.61.385

The Board of Dirctors of our Company at its meeting held on September 30,2016, has taken on record the  basis of allolment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equrly Shares to various successful applicants The Allotment Advice cum Refund Intimations have been dispatched to the address of  The investors as registered with The depositories on October 3,2016. Further, instructions to the SCSBs have been issued on September 30.2016 for unblocking of funds. The Equity Shares allotted to the successful allottees have been uploaded on September 30. 2016 tor credit into the respective beneficiary accounts subject to validalion of the account details with the depositories concerned. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Company has filed the listng applications with BSE and NSE on September 30.2016 and has receirved listing and trading approvals from NSE and BSE and trading in, equity shares will commence on October 4.2016.
INVESTORS PLEASE NOTE

The details of the allotment made has been hosted on the website of the Registrar to the Issue. Karvy Computershare Private Limited at www.Karisma.karvy.com

All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/Sole applicant, Serial number of the BidCum-Application form, number of Equity Shares bid for. name of the Designated Intermediary, place where the bid was submitted and payment details at the address given belovn.

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32. Gachibowli. Fnancial District Nanakramguda, Hyderabad 500 032, Telangana. India
Tel: (+91 40) 6716 2222, Fax: (+91 40) 2343 1551. E-mail: einward.ris@karvy.com Website, www.karisma.karvy.com
Investor Grievance Email. hplep.ipo@karvy.com, Contact Person: Mr.M.Murali Krishna. SEBI Registration No.: INR000000221

THE LEVEL OF SUBSCRIPTION SHOULC NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF HPL ELECTRIC & POWER LIMITED.

Date: October 3,2016

Place: New Delhi

For HPL ELECTRIC & POWER LIMITED
On behalf of the Board of Directors
Sd/-
Company Secretary and Compliance Officer

HPL Electric IPO Basis of Allotment FAQs

Check the basis of allotment document above to know about how the shares are allocated in HPL Electric IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

The HPL Electric IPO basis of allotment (published above) tells you how shares are allocated to you in HPL Electric IPO and category wise demand of IPO share.

Visit the HPL Electric IPO allotment status page to check the number of shares allocated to your application.

Check the basis of allotment document above to know about how the shares are allocated in HPL Electric IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).