HINDUJA FOUNDRIES · PDF fileHINDUJA FOUNDRIES LIMITED ... [email protected]
265
Letter of Offer Dated March 19, 2010 For Equity Shareholders of the Company only HINDUJA FOUNDRIES LIMITED (Our Company was initially incorporated as a private limited company on July 30, 1959 as Ennore Foundries Private Limited under the Companies Act, 1956, in the state of Tamil Nadu. Our Company subsequently changed status to a public limited company from March 28, 1961 onwards. The name of our Company was changed to Hinduja Foundries Limited from February 14, 2008.) Registered Office: Kathivakkam High Road, Ennore, Chennai ‐ 600 057. Tel: (+91 44) 2575 2103 ; Fax: (+91 44) 2575 0390, Website: www. hindujafoundries.com Contact Person: Mr. N. Kothandapani, Company Secretary and Compliance Officer; E‐mail: [email protected] FOR PRIVATE CIRCULATION TO THE EQUITY SHAREHOLDERS OF OUR COMPANY ONLY ISSUE OF 10,055,749 EQUITY SHARES WITH A FACE VALUE OF RS. 10 EACH AT A PREMIUM OF RS. 40 PER EQUITY SHARE FOR AN AMOUNT AGGREGATING RS. 5,027.87 LAKH ON A RIGHTS BASIS TO THE EXISTING EQUITY SHAREHOLDERS OF HINDUJA FOUNDRIES LIMITED (“COMPANY”) IN THE RATIO OF 7 EQUITY SHARE(S) FOR EVERY 13 FULLY PAID‐UP EQUITY SHARE(S) HELD BY THE EXISTING EQUITY SHAREHOLDERS ON THE RECORD DATE, FEBRUARY 4, 2010. THE ISSUE PRICE IS 5 TIMES THE FACE VALUE OF THE EQUITY SHARES. FOR FURTHER DETAILS, PLEASE SEE THE SECTION TITLED “TERMS OF THE ISSUE” ON PAGE 197 OF THIS LETTER OF OFFER. GENERAL RISK Investments in equity and equity related securities involve a degree of risk and Investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, Investors must rely on their own examination of the Issuer and the Issue including the risks involved. The securities being offered in this Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document. Investors are advised to refer to section titled “Risk Factors” on page XII of this Letter of Offer before making an investment in this Issue. OUR COMPANY’S ABSOLUTE RESPONSIBILITY We having made all reasonable inquiries, accept responsibility for and confirm that this Letter of Offer contains all information with regard to us and the Issue, which is material in the context of this Issue, that the information contained in this Letter of Offer is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in any material respect. LISTING Our existing Equity Shares are listed on Bombay Stock Exchange Limited (“BSE”), National Stock Exchange of India Limited (“NSE”) and Madras Stock Exchange (“MSE”). Our GDRs are listed on the Luxembourg Stock Exchange. We have received in‐principle approvals from BSE, NSE and MSE for listing the Equity Shares arising from this Issue vide letters dated September 11, September 17 and September 9, 2009, respectively. The Designated Stock Exchange for this Issue is BSE. LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE HDFC Bank Limited Investment Banking Division Process House, Ground Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai 400 013 Tel: (+91 22) 4080 4108 ; Fax: (+91 22) 4080 4114 Contact Person: Mr. Paresh Soni Email: [email protected] Investor Grievance Id: [email protected] Website: www.hdfcbank.com SEBI Registration No.: INM000011252 Integrated Enterprises (India) Limited 2 nd floor, Kences Towers 1, Ramakrishna Street North Usman Road, T Nagar, Chennai 600 017 Tel: (+91 44) 2814 0801‐3, Fax: (+9144) 2814 2479 Contact Person: Mr. Suresh Babu E‐mail: [email protected] Website: www.iepindia.com SEBI Registration No.: INR000000544 ISSUE PROGRAMME ISSUE OPENS ON LAST DATE FOR REQUEST FOR SPLIT APPLICATION FORMS ISSUE CLOSES ON March 27, 2010 April 03, 2010 April 10, 2010
Transcript of HINDUJA FOUNDRIES · PDF fileHINDUJA FOUNDRIES LIMITED ... [email protected]
Letter of Offer Dated March 19, 2010
For Equity Shareholders of the Company only
HINDUJAFOUNDRIESLIMITED
(OurCompanywas initially incorporatedasaprivate limitedcompanyonJuly30,1959asEnnoreFoundriesPrivateLimitedunder theCompaniesAct,1956, in the stateofTamilNadu.OurCompany subsequently changed status toapublic limitedcompanyfromMarch28,1961onwards.ThenameofourCompanywaschangedtoHindujaFoundriesLimitedfromFebruary14,2008.)
RegisteredOffice:KathivakkamHighRoad,Ennore,Chennai600057.Tel:(+9144)25752103;Fax:(+9144)25750390,Website:www.hindujafoundries.com
ContactPerson:Mr.N.Kothandapani,CompanySecretaryandComplianceOfficer;Email:[email protected]
FORPRIVATECIRCULATIONTOTHEEQUITYSHAREHOLDERSOFOURCOMPANYONLY
ISSUEOF10,055,749EQUITYSHARESWITHAFACEVALUEOFRS.10EACHATAPREMIUMOFRS.40PEREQUITYSHARE FORANAMOUNTAGGREGATINGRS. 5,027.87 LAKHONARIGHTSBASISTOTHE EXISTING EQUITYSHAREHOLDERSOFHINDUJAFOUNDRIESLIMITED (COMPANY) INTHERATIOOF7EQUITYSHARE(S)FOREVERY13FULLYPAIDUPEQUITYSHARE(S)HELDBYTHEEXISTINGEQUITYSHAREHOLDERSONTHERECORDDATE,FEBRUARY4,2010.THEISSUEPRICEIS5TIMESTHEFACEVALUEOFTHEEQUITYSHARES.FORFURTHERDETAILS,PLEASESEETHESECTIONTITLEDTERMSOFTHEISSUEONPAGE197OFTHISLETTEROFOFFER.
GENERALRISKInvestmentsinequityandequityrelatedsecuritiesinvolveadegreeofriskandInvestorsshouldnotinvestanyfundsinthisIssueunlesstheycanaffordtotaketheriskoflosingtheirinvestment.InvestorsareadvisedtoreadtheRiskFactorscarefullybeforetakinganinvestmentdecisioninthisIssue.Fortakinganinvestmentdecision,InvestorsmustrelyontheirownexaminationoftheIssuerand theIssue including therisks involved.Thesecuritiesbeingoffered inthisIssuehavenotbeenrecommendedorapprovedby the Securities andExchangeBoardof India (SEBI)nordoes SEBI guarantee the accuracy or adequacy of thisdocument.InvestorsareadvisedtorefertosectiontitledRiskFactorsonpageXIIofthisLetterofOfferbeforemakinganinvestmentinthisIssue.
OURCOMPANYSABSOLUTERESPONSIBILITYWehavingmadeallreasonableinquiries,acceptresponsibilityforandconfirmthatthisLetterofOffercontainsallinformationwithregardtousandtheIssue,whichismaterialinthecontextofthisIssue,thattheinformationcontainedinthisLetterofOfferis true and correct in allmaterial respects and is notmisleading in anymaterial respect, that the opinions and intentionsexpressedhereinarehonestlyheldandthattherearenootherfacts,theomissionofwhichmakesthisLetterofOfferasawholeoranysuchinformationortheexpressionofanysuchopinionsorintentionsmisleadinginanymaterialrespect.
LISTINGOur existing Equity Shares are listed on Bombay Stock Exchange Limited (BSE),National Stock Exchange of IndiaLimited(NSE)andMadrasStockExchange(MSE).OurGDRsarelistedontheLuxembourgStockExchange.Wehavereceived inprinciple approvals fromBSE,NSE andMSE for listing theEquity Shares arising from this Issuevide lettersdatedSeptember11,September17andSeptember9,2009,respectively.TheDesignatedStockExchangeforthisIssueisBSE.LEADMANAGERTOTHEISSUE REGISTRARTOTHEISSUE
HDFCBankLimitedInvestmentBankingDivisionProcessHouse,GroundFloor,KamalaMillsCompound,SenapatiBapatMarg,LowerParel(W),Mumbai400013Tel:(+9122)40804108;Fax:(+9122)40804114ContactPerson:Mr.PareshSoniEmail:[email protected]:[email protected]:www.hdfcbank.comSEBIRegistrationNo.:INM000011252
IntegratedEnterprises(India)Limited2ndfloor,KencesTowers1,RamakrishnaStreetNorthUsmanRoad,TNagar,Chennai600017Tel:(+9144)281408013,Fax:(+9144)28142479ContactPerson:Mr.SureshBabuEmail:[email protected]:www.iepindia.comSEBIRegistrationNo.:INR000000544
ISSUEPROGRAMME
ISSUEOPENSONLASTDATEFORREQUESTFORSPLITAPPLICATIONFORMS ISSUECLOSESON
March 27, 2010 April 03, 2010 April 10, 2010
mailto:[email protected]://www.hdfcbank.com/http://www.iepindia.com/
I
TABLEOFCONTENTS
CHAPTERS PageNo. SECTION1GENERAL
DEFINITIONSANDABBREVIATIONS IINOTICETOOVERSEASSHAREHOLDERS VIIIPRESENTATIONOFFINANCIALINFORMATIONANDUSEOFMARKETDATA
IX
FORWARDLOOKINGSTATEMENTS XEXCHANGERATES XI
SECTIONIIRISKFACTORS
RISKFACTORS XII SECTIONIIIINTRODUCTION
SUMMARY 1THEISSUE 8SUMMARYFINANCIALINFORMATION 9GENERALINFORMATION 15CAPITALSTRUCTURE 21OBJECTSOFTHEISSUE 29STATEMENTOFTAXBENEFITS 73
SECTION1VABOUTUS
OURMANAGEMENT 84RELATEDPARTYTRANSACTIONS 99
SECTIONVFINANCIALSTATEMENTS
AUDITEDFINANCIALSTATEMENTSFORMARCH31,2009 100FINANCIALINDEBTEDNESS 166STOCKMARKETDATA 173
SECTIONVILEGALANDOTHERINFORMATION
OUTSTANDINGLITIGATIONSANDDEFAULTS 176GOVERNMENTANDOTHERAPPROVALS 182OTHERREGULATORYANDSTATUTORYDISCLOSURES 184
SECTIONVIIISSUERELATEDINFORMATION
TERMSOFTHEISSUE 197 SECTIONVIIIOTHERINFORMATION
MATERIALCONTRACTSANDDOCUMENTSFORINSPECTION 229DECLARATION 231
II
SECTIONIGENERAL
DEFINITIONSANDABBREVIATIONS In thisLetterofOffer,all references toRe.,Rupees,Rs.orINR refer to IndianRupees, theofficial currency of India, USD or U.S.$ or $ refer to the United States Dollar, the officialcurrencyof theUnitedStatesofAmerica,Euro refers to theofficial currencyofEuropeanUnion,Dirham refers to the official currency of theUnitedArab Emirates, and CZK refers toCzechKoruna,theofficialcurrencyoftheCzechRepublic.Referencestothesingularalsoreferstothepluralandonegenderalsoreferstoanyothergender,whereverapplicable,andthewordsLakhorLacmeans 100 thousand and theword croremeans 100 lakhs.Any discrepancies in any tablebetweenthetotalandthesumsoftheamountslistedareduetoroundingoff.DefinitionsUnlessthecontextotherwiserequires,thefollowingtermshavethefollowingmeaningsinthisLetterofOffer.
Term DescriptionWe,us,our,ourCompany theIssuer, HFL or theCompany
Unless the context requires, refers toHindujaFoundriesLimited,apubliclimitedcompany incorporatedundertheprovisionsoftheCompaniesAct,1956 having its registered office at Kathivakkam High Road, Ennore,Chennai600057.
Company/ Issue related terms
Term Description
AbridgedLetterofOffer
Theabridged letterofoffertobesent toourEquityShareholdersason theRecord Date with respect to this Issue in accordance with SEBI ICDRRegulations.
ApplicationSupportedbyBlockedAmount/ASBA
The application (whether physical or electronic) used by an Investors tomakeanapplicationauthorizing theSCSB toblock theamountpayableonapplicationintheirspecifiedbankaccount
Articles/ArticlesofAssociation/AoA
TheArticlesofAssociationofourCompany.
ASBAInvestor Anapplicantwho;a)holdsthesharesoftheCompanyindematerializedformasontherecorddate and has applied for entitlements and / or additional shares indematerializedform;b)hasnotrenouncedhis/herentitlementsinfullorinpart;c)isnotarenouncee;d)isapplyingthroughabankaccountmaintainedwithSCSBs.
Auditor Fraser&RossandS.R.Batliboi&Associates,ourstatutoryjointauditors.Board/BoardofDirectors
BoardofDirectorsofHindujaFoundriesLimitedincludinganycommitteesthereof.
BankerstotheIssue IndusIndBankLimited,IDBIBankLimitedandHDFCBankLimitedConsolidatedCertificate
Incaseofphysicalcertificate, theCompanywould issueonecertificate fortheEquitySharesallottedinonefolio.
ControllingBranches Suchbranchesof theSCSBswhichcoordinateapplicationsunder the Issue
III
Term Description
by the ASBA Investors with the Registrar to the Issue and the StockExchanges and a list of which is available athttp://www.sebi.gov.in/pmd/scsb.pdf.
DesignatedBranches SuchbranchesoftheSCSBswhichshallcollectCAFfromASBAinvestorandalistofwhichisavailableonhttp://www.sebi.gov.in/pmd/scsb.pdf
DesignatedStockExchange
BombayStockExchangeLimited(BSE)
Depositories National SecuritiesDepository Limited (NSDL) andCentralDepositoryServices(India)Limited(CDSL)
DraftLetterofOffer DraftLetterofOfferoftheCompanydatedAugust28,2009,fortheRightsIssue.
ECS ElectronicClearingService.EquityShare(s)orShare(s)
EquitysharesofourCompanyhavingafacevalueofRs.10unlessotherwisespecifiedinthecontextthereof.
EquityShareholder MeansaholderofEquitySharesofourCompany.FinancialYear/Fiscal/FiscalYear/FY
AnyperiodoftwelvemonthsendedMarch31ofthatparticularyear,unlessotherwisestated.
Issue Issue of 10,055,749 Equity Shares with a face value of Rs. 10 each at apremiumofRs.40perEquityShareforanamountaggregatingRs.5,027.87lakhsonarightsbasis to theexistingEquityShareholders in theratioof7Equity Share(s) for every 13 fully paidup Equity Share(s) held by theexistingEquityShareholderson theRecordDate.The issueprice is5 timesthefacevalueoftheEquityShares.
IssueClosingDate April10,2010IssueOpeningDate March27,2010IssuePrice Rs.50perEquityShare.Investor(s) EquityShareholdersasonRecordDateand/orRenounceesapplying in the
Issue.LeadManager HDFCBankLimited.LetterofOffer Means the letterofoffer filedwith theStockExchangesafter incorporating
SEBIcommentsontheDraftLetterofOffer.Memorandum/Memorandum ofAssociation/MoA
MemorandumofAssociationoftheCompany.
MICR MagneticInkCharacterRecognition.NetAssetValueperShare
NetWorthdividedbynumberofEquitySharesoutstanding
NetWorth Equity Share capital and reserves (excluding revaluation reserves), net ofmiscellaneousexpenditurenotwrittenoff
Promoter/Promoters The promoters of the Company namely, Hinduja Automotive Limited(UnitedKingdom)andAshokLeylandLimited.
RecordDate February4,2010Refundthroughelectronictransferoffunds
RefundsthroughECS,DirectCredit,RTGSorNEFT,asapplicable.
Registrar ofCompanies/RoC
TheRegistrarofCompanies,Tamilnadu,locatedatBlockNo.6,BWing2ndFloor,ShastriBhavan,HaddowsRoad,Chennai600006.
IV
Term Description
Registrar / Registrar totheIssue
IntegratedEnterprises(India)Limited
Renouncees Any persons who have acquired Rights Entitlements from the EquityShareholders.
RightsEntitlement 7 Equit
