Kaveri Seed Company IPO:Kaveri Seed IPO opens on sept 6th

Kaveri Seed Company Limited is entering the capital markets with an initial public offering, IPO of 40,00,000 Equity Shares, for cash, at a premium to be decided through a 100% Book Built Issue.The price band for the issue has been fixed at Rs 150/- at lower level and Rs 170/- at upper level for equity share of Rs 10/-.The issue opens on Sept 06, 2007, and closes for subscription on Sept 11, 2007.

Out of the total 40,00,000 Equity shares in offering,2,00,000 equity shares are reserved for employees and the rest of the 38,00,000 lakh equity shares are the net offering to the public.

Qualified Institutional Buyers Portion: At least 19,00,000 Equity Shares ,constituting at least 50% of the Net Issue will be available for allocation to Qualified Institutional Buyers on a proportionate basis.5% of the QIB Portion, constituting 95,000 Equity Shares shall be available for allocation on proportionate basis to Mutual Funds only,and the balance QIB Portion shall be available for allocation on aproportionate basis to all QIBs, including Mutual Funds.If at least 50% of the Net Issue cannot be allocated to QIBs, then the entire application money will be refunded.

Non-Institutional Portion :Upto 5,70,000 Equity Shares,constituting up to 15% of the Net Issue will be available for allocation to Non-Institutional Bidders on a proportionate basis.

Retail Portion : Upto 13,30,000 Equity Shares constituting up to 35% of the Net Issue that will be available for allocation to Retail Individual Bidders on a proportionate basis.

The objects of this Issue are

1. Acquisition of farmland for R&D near Hyderabad, Alwar and Ahmedabad

2. Setting up of marketing offices & godowns in Delhi, Lucknow, Jaipur, Ahmedabad and Aurangabad

3. Setting up of corn cob drying plants in Medak District, Andhra Pradesh and Bellary, Karnataka

4. Setting up of a biotechnology lab at Gundla Pochampally near Hyderabad

5. Upgradation of existing seed processing plants at Kandlakoi, Gundla Pochampally, Gatla Narsingapur and Bellary

6. Setting up of a seed processing plant in Medak District near Hyderabad

7. Meeting working capital requirements.

The Kaveri Seeds Coompany IPO is proposed to be listed on Bombay Stock Exchange and the Book running lead managers to the issue are Ananthrathi securities ltd,Sobhagya Capital Options Limited. The Registar for the Kaveri Seeds IPO is Bigshare Online Services Limited.

To read the draft prospectus of Kaveri Seed company IPO  clickhere.

For further information regarding the Kaveri Seed Company IPO subscription,allotment,listing date and refund details do check this blog regularly.

For all the other IPO’s in Nse and Bse check the IPO section.