Price Band fixed from Rs. 165 to Rs. 172 per equity share
Repco Home Finance Limited (the “Company”),
a professionally managed and NHB-registered housing finance company
promoted by Government of India enterprise Repco Bank Limited, is
planning to open on March 13, 2013, (“Issue Opening Date”) a public issue of 15,720,262 equity shares of face value of Rs. 10 each (“Equity Shares”) for cash at a price band fixed from Rs. 165 to Rs. 172 per Equity Share (the “Issue”).
Bids can be made for a minimum of 75 Equity Shares and in multiples of
75 Equity Shares thereafter. The Anchor Investors can bid one day prior
to the Bid/Issue Opening Date. The Bid/Issue closes on March 15, 2013, (“Issue Closing Date”) for all Bidders.
The
Issue includes a reservation of 180,000 Equity Shares of Rs. 10 each
for subscription by eligible employees at the Issue Price (“Employee Reservation Portion”). The Company, in consultation with the Book Running Lead Managers (“BRLMs”)
has decided to offer a discount of Rs. 16 on the Issue Price to
Eligible Employees. The Issue shall constitute 25.29% and the Net Issue
(Issue less the Employee Reservation Portion) shall constitute 25% of
the post Issue paid-up capital of the Company, respectively.
The
Issue is being made through the 100% Book Building Process in
accordance with Rule 19(2)(b)(i) of the Securities Contracts Regulation
Rules, 1957, as amended read with Regulation 26(1) of the SEBI ICDR
Regulations, wherein 50% of the Net Issue shall be available for
allocation on a proportionate basis to qualified institutional buyers (“QIBs”).
The Company may, in consultation with the BRLMs allocate up to 30% of
the QIB Portion to Anchor Investors at the Anchor Investor Allocation
Price, on a discretionary basis, out of which at least one-third shall
be reserved for allocation to domestic Mutual Funds only. In the event
of under-subscription or non-allocation in the Anchor Investor Portion,
the balance Equity Shares shall be added to the Net QIB Portion. Such
number of Equity Shares representing 5% of the Net QIB Portion shall be
available for allocation on a proportionate basis to Mutual Funds only.
The remainder of the Net QIB Portion shall be available for allocation
on a proportionate basis to all QIBs including Mutual Funds, subject to
valid Bids being received from them at or above the Issue Price.
Further, not less than 15% of the Net Issue shall be available for
allocation on a proportionate basis to Non Institutional Bidders and not
less than 35% of the Net Issue shall be available for allocation to
Retail Individual Bidders, subject to valid Bids being received from
them at or above the Issue Price. The allotment of Equity Shares to each
Retail Individual Bidder shall not be less than minimum bid lot,
subject to availability of Equity Shares in Retail Investor category,
and the remaining available Equity Shares, if any, shall be allotted on
proportionate basis. Further, 180,000 Equity Shares shall be reserved
for allocation on a proportionate basis to Eligible Employees, subject
to valid Bids being received at or above the Issue price. All Investors
other than Anchor Investors may participate in the Issue though the ASBA
process by providing the details of their respective ASBA Accounts.
QIBs and Non Institutional Bidders shall mandatorily participate through
the ASBA process.
The
Issue has been graded by ICRA Limited and has been assigned the “IPO
Grade 3/5” indicating average fundamentals in its letter dated December
18, 2012. The Equity Shares offered through this Red Herring Prospectus
are proposed to be listed on the NSE and the BSE.
The
BRLMs to the Issue are SBI Capital Markets Limited, IDFC Capital
Limited and JM Financial Institutional Securities Private Limited.
Disclaimer:
Repco
Home Finance Limited is proposing, subject to market conditions and
other considerations, a public issue of its Equity Shares and has filed a
Red Herring Prospectus dated March 4, 2012 (“RHP”) with the Registrar of Companies, Tamil Nadu, at Chennai. The RHP shall be available on the website of SEBI at www.sebi.gov.in; on the websites of the Book Running Lead Managers (“BRLMs”) at www.sbicaps.com; www.idfccapital.com; and www.jmfl.com.
Investors should note that an investment in equity shares involves a
high degree of risk and for details relating to the same, see the
section entitled “Risk Factors” on page xiii of the RHP. This document
is not an issue of securities for sale in the United States or
elsewhere. This document has been prepared for publication in India and
is not for publication or distribution, directly or indirectly, in or
into the United States. The Equity Shares have not been and will not be
registered under the U.S Securities Act of 1933, as amended (the “U.S
Securities Act”) and may not be offered or sold within the United States
(as defined in Regulation S of the U.S Securities Act), except pursuant
to an exemption from, or in a transaction not subject to, the
registration requirements of the U.S Securities Act and applicable state
securities laws. Accordingly, the Equity Shares are only being offered
and sold outside the United States in reliance on Regulation S of the
U.S Securities Act.
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