Barak Valley Cements IPO opens on 29th October

Barak Valley Cements IPO : Barak Valley Cements Limited is entering the capital markets with an Initial Public Offering (IPO) of 56,60,000 equity shares of Rs 10 each with the price band of the issue at Rs 37 - 42. Barak Valley Cements IPO -BVCL IPO will open for subscription on 29th October 2007 and the subscription of the issue will close on  November 01, 2007.

The net issue to the public is 55,47,000 equity shares after educing the Employees Reservation of 1,13,000 equity shares.The net issue to the public would constitute 25.03% post issue paid up capital of the company.

Barak Valley Cements IPO Issue Details :

Total Issue size is 56,60,000 equity shares. Less : Reservation for Employees : 1,13,0000 shares

Net Issue to the Public is : 55,47,000 equity shares.

Out of the Net issue to the public,Qualified Institutional Buyers (QIBs) will be allocated 27,73,500 Equity Shares(on proportionate basis). Non Institutional Investors will be allocated 8,32,050 Equity Shares on a proportionate basis and the Retail Investors Cateogory will be allocated 19,41,450 Equity Shares.

So we have done Analysis/Review of the Barak Valley Cements IPO which is as follows

About Barak Valley Cements Limited:

The Company is in the business of Cement manufacturing and markets its products under the brand name “Valley Strong Cement” with most of the sales in the North Eastern Region.The company was incorporated in the year1999 and the promoters of our Company are Mr. Prahlad Rai Chamaria, Mr. Bijay Kumar Garodia and Mr. Santosh Kumar Bajaj.

Product portfolio of the company includes  Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC).

The Company has the following companies as its wholly owned subsidiaries:
1. Badarpur Energy Private Limited
2. Cement International Limited
3. Meghalaya Minerals & Mines Limited

Financials of the Company :

Income for fiscal 2006 and 2007 were, Rs. 5351.71 lakhs and Rs. 7433.21 lacs respectively.Net Profit after Tax for fiscal 5 2006 and 2007 were Rs. 1151.96 lakhs and Rs.1430.88 lakhs respectively.The company sold approximately 1.04 lacs tons, 1.22 lacs ton, 1.34 lacs tons and 1.60 lacs tons of cement for fiscal 2004, 2005 and 2006 and 2007 respectively.

OBJECTS Of Barak Valley Cements IPO:The company likes to utilise the funds raised from the IPO for the following purposes :

1. To expand clinkerisation capacity of the company from present 420 TPD to 600 TPD and Cement Grinding Capacity from 460 TPD to 750 TPD;
2. Investment in subsidiary company Badarpur Energy Pvt Limited.,for setting up a biomass based powerproject at Badarpurghat, Assam;
3. To meet working capital requirement;
4. General corporate purpose;

Book Running Lead Manager to the Barak IPO is UTI Securities Limited and the registrar for the issue is Intime Spectrum Registry Limited. Post issue the Equity Shares are proposed to be listed on Bombay Stock Exchange Limited (BSE) and on the National Stock Exchange of lndia Limited (NSE).For the purpose of Barak Valley IPO,Bombay Stock Exchange Limited is the Designated Stock Exchange.

For updates regarding the Barak Valley Cements IPO Subscription Figures, Allotment Status of the Barak Valley Cements IPO visit our website regularly.