Indore-based Indo Thai Securities (ITSL), engaged in stock broking business, is entering the capital market with its initial public offer (IPO) of 40 lakh equity shares. The shares of Rs 10 each are being offered in a price band of Rs 70-84 per share.
The funds raised through the issue will be used to finance business growth. Part of the proceeds is proposed to be utilised as long term working capital.
The issue is based on 100% book-building process, the issue opens for subscription on September 30, 2011 and closes on October 5. Ahmedabad-based Corporate Strategic Allianz is the lead manager to the issue while Mumbai's Sharepro Services will act as the registrar.
Of the 40 lakh shares, 50% of the net issue is being offered to Qualified Institutional Buyers (QIB). Of this 19 lakh shares will be available to all QIBs, including mutual funds and the remaining 1 lakh shares will specifically be available to mutual funds. Further 14 lakh shares of Rs 10 each (less than 35%) will be offered to retail investors. The balance 6 lakh is for non-institutional allocation. The company’s current share capital is Rs 6 crore.
The company currently has 13 branches of which 11 are located in Madhya Pradesh. After the issue, the company will open branches in Ahmedabad, Vadodara, Pune, Nagpur, Raipur, Jodhpur, Jaipur, Udaipur, Noida and Lucknow.
ITSL was promoted in 1995 by chartered accountants Parasmal Doshi, chairman and Dhanpal Doshi, MD. The company provides equity and derivative broking services with membership in BSE, NSE, USE, and MCX - SX and is also a depository participant of CDSL.
