| The GDR, managed by Goldman Sachs International and Merrill Lynch International, is priced at $13.06 (Rs 535.46 calculated at Rs 41 a dollar). This is a discount of 4.21 per cent to the latest price quoted by the company's scrip on the Bombay Stock Exchange, which is Rs 559 a share. |
| Sources said the issue was oversubscribed by 2.4 times and the total demand for the offering was over $671 million. The large investors who have participated in the offering include steel tycoon LN Mittal, Fidelity and Orient Global. Large FIIs have been increasing their stake in Indiabulls and now own 60 per cent of the company. |
| Nipun Goel, director (investment banking) at DSP-Merrill Lynch, said, the fact that the issue was subscribed by about 3 times showed investors' faith in Indiabulls management. "A global mix of investors from Asia, Europe and the US participated in the offer," he said. |
| In a notice to the BSE, Indiabulls Financial Services said the GDR offering on the Luxembourg Stock Exchange also has an over-allotment option of up to $25 million to Merrill Lynch International. The issue was priced after market hours on Wednesday. |
| Company sources said the funds mobilised would be utilised for its consumer finance business, which was growing at a rapid pace. The total consumer loans disbursed up to March 31, 2007, rose by 1,839.5 per cent to Rs 2,202.3 crore compared with total disbursals of Rs 113.55 crore up to March 31, 2006. |
| The financing income of the company was 57.8 per cent (or Rs 719.2 crore) of its total revenues in 2006-07 compared with 47.2 per cent (or Rs 289.4 crore) of total revenues in the previous financial year. |
| The company said it expects to increase consumer loan disbursals to Rs 6,000 crore in 2007-08. It is also targeting double-digit pre-tax returns on the consumer loans portfolio. Indiabulls Financial will also scale up its employee base from 1,500 to 2,500 in the current financial year. |
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