Edelweiss Capital decided to come out with an Initial Public Offering in order to raise substantial amount of capital that could be used for loan repayment for enhancement of technological capacity. The company decided to sell its' 8,386,147 equity shares through this Initial Public Offering.
Edelweiss Capital IPO refers to the Initial Public Offering of Edelweiss Capital(ECL), which was scheduled to open on 15th November,2007 and close on 20th November, 2007. The company decided to come out with this Initial Public Offering in order to raise substantial amount of capital that could be used for loan repayment for enhancement of technological capacity.
Details of the Initial Public Offering
The company decided to sell its' 8,386,147 equity shares through this Initial Public Offering. Face Value of each of these equity shares were Rupees 5. The company fixed the price band of shares for this IPO as Rupees 725 to Rupees 825 per share. It was decided that the shares would be sold at a price determined through 100% book building process.
Edelweiss Capital appointed Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Lehman Brothers Securities Private Limited as the BRLMs or Book Running Lead Mangers for the IPO. In time Spectrum Registry Limited was appointed the Registrar for the Edelweiss Capital IPO.
The shares of the Edelweiss Capital were proposed to be listed on NSE(National Stock Exchange) and BSE(Bombay Stock Exchange).
Allocation of Shares
Edelweiss Capital declared that out of its' total 8,386,147 equity shares; 204,540 shares would be reserved for the eligible employees of the company. So, the company decided to sell 8,181,607 equity shares through Net Public Issue. It was made clear that, the Net Public Issue would constitute 10.92% of the post issue paid up capital.
Edelweiss Capital decided that minimum 60% of the Net Public Issue would be offered to the QIBs or Qualified Institutional Buyers. 5% of these equity shares, to be offered to the QIBs, would be reserved
for the Mutual Funds. It was also informed that, 30% of Net Public Issue would be allocated to the individual bidders from the Retail Sector, whereas, 10% would be offered to the non-institutional bidders.