Abstract:
Take Solutions came came out with an Initial Public Offering in order to raise substantial amount of capital that could be used in repaying loans and in strengthening the infrastructure base of the company. The company decided to sell its' 2,100,000 equity shares through this Initial Public Offering.
Take Solutions IPO refers to the Initial Public Offering of Take Solutions(TSL), which was scheduled to open on 1st August, 2007 and close on 7th August,2007. The company came out with this Initial Public Offering in order to raise substantial amount of capital that could be used in repaying loans and in strengthening the infrastructure base of the company.
Details of the Initial Public Offering
The company decided to sell its' 2,100,000 equity shares through this Initial Public Offering. The face value of these equity shares were Rupees 10.
The company fixed the price band of the shares as Rupees 675 to Rupees 730 per share. It was decided that the equity shares would be sold at a price determined through a 100% book building process. Take Solutions appointed Edelweiss Capital Limited as the BRLM or Book Running Lead Manager for the Initial Public Offering.
The company declared that out of total 2,100,000 equity shares; 100,000 shares would be reserved for the eligible employees of the company. So, it was made clear that the company would sell 2,000,000 equity shares through Net Public Issue. The company informed that the Net Public Issue would constitute 16.67% of the post issue paid up capital.
The shares of Take Solutions were proposed to be listed on NSE(National Stock Exchange) and BSE(Bombay Stock Exchange).
Reason behind the IPO
Take Solutions took the decision of Initial Public Offering, with the objective of using the capital, raised through the IPO, in repaying a debt of Rupees 83.50 crores and a term loan of Rupees 20 crores. The company also planned to acquire Clear Orbit Inc. of USA using the capital raised through the IPO. Take Solutions also thought of utilizing the raised capital in the product development projects and in strengthening the domestic infrastructure base of the company.