Bajaj Corp IPO opens on 2nd August 2010 Price Band fixed at Rs. 630 to Rs. 660
Bajaj Corp Limited (the "Company" or the "Issuer"), one of India's leading producers of hair oils, proposes to enter the capital markets on 2nd August, 2010with its Initial Public Offer ("IPO") of 4,500,000 equity shares of Rs. 5/- each (the "Issue"). The Price Band has been fixed at Rs 630 to Rs. 660. The Issue closes on 4th August 2010 for QIBs and on 5th August 2010 for Retail and Non-Institutional Bidders.
Tweet-- Bajaj Corp Limited (the "Company" or the "Issuer"), one of India's leading producers of hair oils, proposes to enter the capital markets on 2nd August, 2010with its Initial Public Offer ("IPO") of 4,500,000 equity shares of Rs. 5/- each (the "Issue"). The Price Band has been fixed at Rs 630 to Rs. 660. The Issue closes on 4th August 2010 for QIBs and on 5th August 2010 for Retail and Non-Institutional Bidders. The Issue has been graded by CRISIL Limited, a SEBI registered credit rating agency, as IPO Grade 4/5, indicating that the fundamentals of the IPO of the Company are above average. Kotak Mahindra Capital Company Limited is the sole Book Running Lead Manager for the Issue and Karvy Computershare Pvt. Ltd. is the Registrar to the Issue.
The Issue, which will be through a 100% book building process, shall constitute 15.3 % of the post-issue paid up equity capital of the Company. At least 60% of the Issue shall be allocated on a proportionate basis to qualified institutional buyers, not less than 10% of the Issue shall be available to non-institutional bidders and not less than 30% of the Issue shall be available to retail individual bidders.
Out of the net proceeds of the Issue, the Company intends to use Rs. 220 crores for promotion of future products in the personal care segment and Rs. 50 crores for acquisitions and other strategic initiatives. The Company seeks to leverage the success of its Bajaj Almond Drops Hair Oil brand by launching four products in the personal care segment. Further, the Company also seeks to consolidate its position in the fast moving consumer goods ("FMCG") segment by continuously evaluating inorganic acquisition opportunities.
Notes to Editor
About Bajaj Corp Ltd.
Bajaj Corp Ltd., a part of the Bajaj Group, is one of India's leading FMCG companies with major brands in hair care segment. According to a survey done by AC Neilson, Bajaj Corp Ltd. is India's third largest producer of hair oils and the largest producer of light hair oils with its Almond Drops brand achieving an Indian market share of 50.3% for the fiscal year ended 31st March, 2010. Being a part of the Bajaj Group it enjoys considerable brand loyalty in the Indian market with a large number of consumers associating the brand with quality products at competitive prices.
The legacy Bajaj Corp extends back to 1953 when Mr. Kamal Nayan Bajaj established Bajaj Sevashram Limited ("BSL") to market and sell hair oils and other beauty products. It was later demerged to Bajaj Consumer Care Ltd. ("BCCL") in 2001. Subsequently, BCCL licensed the trademarks for all its brands to Bajaj Corp Ltd. pursuant to an exclusive trademark licensing agreement and the organization began operating from April 2008. The exclusive trademark license agreement is valid for a term of 99 years from 12th March, 2008 and is extendable for an additional ten years.
The Company's total income for the year ended 31st March 2010 was Rs. 334.86 crores and net profits were Rs. 83.91 crores as compared to total income of Rs. 252.02 crores and net profits of Rs 46.92 crores for the previous year ended 31st March 31 2009.
Disclaimer
Bajaj Corp Limited is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed the Red Herring Prospectus with the Registrar of Companies, Maharashtra at Mumbai. The Red Herring Prospectus is available on the website of Securities and Exchange Board of India (SEBI) at www.sebi.gov.in and the website of the Book Running Lead Manager at www.kmcc.co.in. Any potential investor should note that an investment in equity shares involves a high degree of risk. For risk factors and other details potential investors should refer to the Red Herring Prospectus available on the websites mentioned above. This announcement is not an offer for sale or solicitation of an offer to buy securities in the United States, or any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. This announcement may not be published or distributed in the United States of America and is not an offer or solicitation of an offer for sale of securities in the United States. The securities have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration under such act. There will be no offering of securities in the United States.