The first two public issues of 2010 -- the initial public offer of IT firm Infinite Computer Solutions and the follow-on public offer of Birla Shloka Edutech-- will be open for public subscription from tomorrow onwards.
IT services provider Infinite Computer is coming up with its initial public offer (IPO) of 1.15 crore shares of Rs 10 each in the price band of Rs 155-165 a piece.
At the upper end of the price range, the company expects to garner about Rs 189.79 crore. It has already got a commitment of Rs 28.46 crore from nine anchor investors.
On the other hand, Birla Shloka Edutech, part of Yash Birla Group, is entering the primary market with its FPO in the price band of Rs 45-50 per share and hopes to raise Rs 34.77 crore.
On Friday, shares of Birla Shloka closed at Rs 54.6, down by 3.96 per cent on the Bombay Stock Exchange.
The equity shares of the company are at present listed on the BSE, Calcutta Stock Exchange (CSE) and Ahmedabad Stock Exchange (ASE) and the shares issued through the public issue are proposed to be listed on all these exchanges.
Birla Shloka is engaged in sales and services of varied products to education institutions. The company provides IT infrastructure and impart IT and IT-enabled education in schools of various boards.
Both the issues would close on January 13.
The proceeds from the FPO are proposed to be used for capital expenditure for turnkey projects executed by the firm to the tune of Rs 15 crore, capital expenditure of Rs 9 crore on upgrading infrastructure and for funding the proposed M&A activities and meeting the working capital requirements.
"The government thrust on education through public private partnership is commendable and we are excited to be an active participant. The proceeds of the issue will help to accelerate the growth of our company in becoming a leader in education solutions," Yash Birla Group Chairman Yashovardhan Birla said.
Indian companies are expected to embark on a mega fund raising spree this year with plans to raise over Rs 50,000 crore by way of public offers driven by sharp recovery in the stock market.
Over 50 companies have already filed draft red herring prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (Sebi).
Last year, about Rs 20,000 crore was raised by Indian companies through IPOs.
