Meaning and Benefits of IPOs

An initial public offering is referred to as sale of equity of a company to the public by the promoters of the company.

Companies prefer to go for Initial Public offering due to following reasons:

• Additional Capital resources for funding of projects/expansion plans.• Dilution of existing promoters share holding or by venture capitalist• Liquidity for shareholders.• Enhances corporate image thus providing visibility.

Factors to be Consider

Eligibility Criteria:

Net Tangible assets of Rs. 3 Crores in each of the preceding 3 years. Track record of Distributable profits at least 3 out of 5 preceding years.

The Company has a Net worth of Rs. 1 Crore in preceding 3 years.

The proposed issue should not exceed 5 times of its Pre-issue

Management Discussion and Analysis• Overview of Indian Steel Industry• Gyscoal’s strategy• Significant development – Bright Bars• Factors affecting results of operations

Foreign currency risk Cost of Materials Withdrawal of Government incentives Stiff Competition

• Analysis for changes in income and expenditure Future increase in labour or material cost or prices increase in sales volume,introduction of new products or

services dependence on a single or few suppliers or customers Competitive conditions

• Overview of Manufacturing (Lead Metal) Industry• No Significant development • Factors affecting results of operations/Analysis of change in

income and expenses General economic and business conditions Ability to successfully implement the strategy of growth and expansion Factors affecting industrial activity Increases in raw materials prices Cyclical or seasonal fluctuations in the operating results Amount that the Company is able to realize from the clients Changes in laws and regulations that apply to the industry Changes in fiscal, economic or political conditions Changes in the foreign exchange control regulations, interest rates and

tax laws in India

Basis for issue price• Earnings per share (Rs.) =

Net profit as restated, attributable to equity shareholders

Weighted Average number of equity shares outstanding during the year/period

• Industry P/E ratio• Return on Net Worth (%) =

Net profit after taxNet worth as at the end of the year / period

• Net Asset Value per Equity Share

EPS Industry P/E RON W NAV

Glyscoal Alloys 3.81 20.5 7.13 March 31, 2009 Rs. 28.84Sept 30, 2009Rs. 32.63

Gravita India 15.62 25.50 64.00 March 31, 2009 30.82

Peer comparision

Face Value

EPS RON W NAV

Gallant Metal 10 1.7 11.3 7.2

Ratnamani Metals 2 15.3 27.8 62.4

Rajratan Global 10 13.1 14.2 98.7

Gyscoal Alloys Limited

10 2.71 7.88 28.84

Face Value

EPS RON W Equity ShareCapital(in Cr.)

Hindustan Zinc Ltd. 10 62.80 20.80 422.53

Nile Limited 10 - 29.20 3.00

Pondy Oxides andChemicals Limited

10 - 24.50 10.11

Gravita India Ltd. 10 8.88 31.00 10.02

Peer comparision

Legal & Other Information• Pending litigations & material Developments• Govt approvals/ licensing arrangements

- investment approvals (FIPB/ FDI)- technical approvals

• Other regulatory & statutory disclosures- authority for issue and details of resolution- prohibition by SEBI - eligibility of the issuer company

• Disclaimer Clauses ( SEBI, Stock exchanges , RBI –if applicable , grading agency)• Listing (Names of exchanges where securities are proposed to be listed)• Consent of directors , auditors, solicitors, Managers to the issue, registrars, bankers to the

issue and experts)• Expenses of the issue• Details of the fees payable to intermediaries, underwriting commission , brokerage • Details of previous rights / public issue• Details of other listed companies under same management• Stock market data

SHAREHOLDERS PATTERN

50.89

0.360.10

48.65PROMOTERSPROMOTER GROUPOTHERSSHARES OFFERED AT IPO

99.10

0.71 0.19

PROMOTERSPROMOTER GROUPOTHERS

• % WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS PRE-ISSUE

• % WISE SHARE HOLDER PATTERN OF GYSCOAL ALLOYS POST-ISSUE

1.52

30.94

7.73

0.98

9.72

0.46

MR MANISH SHAHMR VIRAL SHAHMRS GIRABEN SOLANKIMR ZANKARSINH SOLANKIGENERAL CAPITAL AND HOLD-ING COMPANY PVT LTDOTHERS

1.52

30.94

7.73

0.989.72

0.46

48.65

MR MANISH SHAHMR VIRAL SHAHMRS GIRABEN SOLANKIMR ZANKARSINH SOLANKIGENERAL CAPITAL AND HOLD-ING COMPANY PVT LTDOTHERSSHARES OFFERED IN IPO

75.99

23.95

0.06

PROMOTERSPROMOTER GROUPOTHERSSHARES OFFERED AT IPO

54.31

17.12

0.04

28.53

PROMOTERSPROMOTER GROUPOTHERSSHARES OFFERED AT IPO

CAPITAL STRUCTURE

GYSCOAL ALLOYS• AUTHORISED CAP : Rs. 1700 LACS• ISSUED PAID UP CAP B4 IPO: 812.76 LACS• ISSUED CAP AFTER IPO : 1582.76 LACS770 LACS FROM IPO OF WHICH • QIB : 385 LACS• NFI: 115.5 LACS• RETAIL INVESTORS: 269.5 LACS• SHARE PREM A/C : 5770.83 LACS

CAPITAL STRUCTURECONTD

GRAVITA INDIA• AUTHORISED CAP : Rs. 1500 LACS• ISSUED PAID UP CAP B4 IPO: 1002 LACS• ISSUED CAP AFTER IPO : 1402 LACS400 LACS FROM IPO OF WHICH • QIB : 197.5 LACS• NFI: 59.25 LACS• RETAIL INVESTORS: 138.25 LACS• EMPLOYESS: 5 LACSSHARE PREM A/C : 4600 LACS

Lock in requirements• Promoters’ contribution to be brought in at least one day prior to issue opening date and to

be kept in Escrow account.• Lock in for period of 3 years. • Lock in to start from the date of allotment• Last date of lock in shall be reckoned as three years from the date of commencement of

commercial production or date of allotment which ever is later.• Lock in of excess promoters’ contribution will be one year.• Securities issued last to be locked in first.• Entire pre issue capital other than locked in as minimum promoters’ contribution shall be

locked in for one year.• Securities issued on firm allotment basis shall be locked in for a period of one year from the

date of commencement of commercial production or date of allotment whichever is later.• Locked in shares by promoters may be pledged with bankers provided pledge of shares is one

of the conditions.• Inter se transfer of securities amongst promoters may be transferred subject to continuation

of lock-in in the hands of transferee for remaining period.• Inscription of Non transferability • Non-Transferable along with duration.

Name of Promoter

Date ofAllotment

/Transfer

Consideration Number ofShares

Face Value(Rs.)

Issue/Transfer Price(Rs.)

% of lock in

Dr. M.P. Agarwal

Different for shares

Cash/Bonus/Transfer

16,64,424 10 10 11.87

Mr. Rajat Agrawal

Different for shares

Cash/Bonus/Transfer

11,39,576 10 10 8.13

Name of Promoter

Date ofAllotment/Transfer

Consideration Number of

Shares

Face Value(Rs.)

Issue/Transfer

Price(Rs.)

% of lock in

Mr. Viral MShah

Different for shares

Preferential Allotment/

Bonus/Transfer

3201580 10 10 20.23

Gyscoal Alloys Ltd

Gravita India Ltd

OBJECTIVE OF COMPANIES

GYSCOAL• To finance the capital expenditure for enhancing the

production capctiy of melting section by 100,000 MT per annum.

• To meet the Long Term Working Capital requirements of the Company To meet General Corporate Purpose: and

• To meet Issue Expenses • To provide liquidity to the shareholders• To enhance brand equity

Objectives contdGRAVITA1. To set up additional manufacturing facilities at Jaipur and new facility at

Wada, Maharashtra in India 2. To invest in overseas ventures at- Sri Lanka- Navam Lanka Limited- Senegal - Pagrik Senegal SA- Honduras - Gravita Honduras SA3. To invest in setting up manufacturing facilities at Australia, Belarus, Chile

and Mexico.4. To provide margin money for working capital requirement5. For general corporate purposes6. To meet the expenses of the issue.7. To list the equity shares on the Stock Exchanges.

Boa contd• gyscoal• PUBLIC ISSUE OF 77,00,000 EQUITY SHARES OF Rs.10 EACH FOR CASH AT A PRICE OF Rs.

71 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 61 PER EQUITY SHARE) AGGREGATING Rs. 5467 LACS BY GYSCOAL ALLOYS LIMITED ('COMPANY' OR 'ISSUER' OR 'GAL') (HEREINAFTER REFERRED TO AS THE "ISSUE"). THE ISSUE WOULD CONSTITUTE 48.65% OF THE FULLY DILUTED POST ISSUE PAID UP CAPITAL OF THE COMPANY.

• THE FACE VALUE PER EQUITY SHARE IS Rs. 10/-. THE ISSUE PRICE PEREQUITY SHARE IS Rs. 71 AND IT IS 7.1 TIMES THE FACE VALUE.

• The Issue is being made through the 100% Book Building Process wherein up to 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers, out of which 5% of the QIB Portion shall be available for.allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all Qualified Institutional Buyers, including Mutual Funds, subject to valid Bids being received at or above Issue Price. Further, at least 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and at least 35% of the Issue shall be availablefor allocation on a proportionate basis to Retail Individual Bidders

Retail Investors

Category No. of

ApplicationsTotal No. of

Shares Applied

No. of Shares Allocated Ratio

Total No. of Shares

Allocated

90 1679 151,110 90 5:39 19,350

180 676 121,680 90 10:39 15,570

270 397 107,190 90 5:13 13,770

360 286 102,960 90 20:39 13,230

450 295 132,750 90 9:14 17,100

540 108 58,320 90 10:13 7,470

630 303 190,890 90 9:10 24,570

720 207 149,040 92 1:1 19,044

810 59 47,790 104 1:1 6,136

900 133 119,700 115 1:1 15,295

990 40 39,600 127 1:1 5,080

1080 24 25,920 138 1:1 3,312

1170 31 36,270 150 1:1 4,650

1260 27 34,020 161 1:1 4,347

1350 14643 19,768,050 172 1:1 2,518,596

Lot size = 90

NICategory No. of

ApplicationsTotal No. of

Shares Applied

No. of Shares Allocated Ratio

Total No. of Shares

Allocated

1440 1 1,440 90 1:1 902700 1 2,700 90 1:1 906750 2 13,500 203 1:1 4067020 1 7,020 210 1:1 210

13500 1 13,500 405 1:1 40563360 5 316,800 1899 1:1 9,49591530 2 183,060 2743 1:1 5,486

105570 1 105,570 3164 1:1 3,164422550 2 845,100 12664 1:1 25,328500040 1 500,040 14986 1:1 14,986563310 1 563,310 16882 1:1 16,882

2112660 2 4,225,320 63317 1:1 126,634

2309940 2 4,619,880 69229 1:1 138,458

5634000 1 5,634,000 168834 1:1 168,834

7042230 2 14,084,460 211033 1:1 422,066

QIB

CategoryFIIs /

BanksFlls MFs ICs VCs Total

No. of Shares

- 3,850,000 - - 3,850,000

Basis of allotment• gravita• PUBLIC ISSUE OF 36,00,000 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PRICE OF Rs.

125/- PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF Rs.115/-PER EQUITY SHARE) FOR CASH AGGREGATING RS. 4500 LACS BY GRVITA INDIA LIMITED (HEREINAFTER REFFERED TO AS THE "ISSUE"). THE ISSUE WILL CONSTITUTE 26.43% 0F THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY. UPTO 50,000 EQUITY SHARES WILL BE RESERVED IN THE ISSUE FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE "NET ISSUE". THE NET ISSUE WOULD CONSTITUTE 26.06% OF THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY

• THE ISSUE PRICE IS RS. 125/- PER EQUITY SHARE. THE FACE VALUE OF EQUITY SHARE IS RS. 10/-.

• THE ISSUE PRICE IS 12.5 TIMES OF THE FACE VALUE• This Issue is being made in terms of regulation 26(2)(a)(i) and b(i) of SEBI (ICDR) Regulations,

2009, as amended from time to time, where by, at least 50% of the Net offer to public shall be allotted to Qualified Institutional Buyers (QIBs), failing which the full subscription monies shall be refunded. (In case of delay, if any in refund, Gravita India Limited shall pay interest on the application money at the rate of 15% per annum for the period of delay).

Retail

Category No. Of Applications

Total No. of Equity Shares

applied

No. of Equity Shares allocated

per ApplicantRatio

Total No. of Equity Shares

allocated

50 7052 352600 50 1 :36 9800100 5022 502200 50 1:18 13950150 1596 239400 50 1:12 6650200 3389 677800 50 1:9 18850250 881 220250 50 5:36 6100300 1062 318600 50 1:6 8850350 521 182350 50 7:36 5050

400 4941 1976400 50 2:9 54900

450 443 199350 50 1 :4 5550500 962 481000 50 5:18 13350550 199 109450 50 11:36 3050600 538 322800 50 1 :3 8950650 137 89050 50 13:36 2450700 295 206500 50 7:18 5750

750 9821 7365750 50 17:41 203600

800 39760 31808000 50 37:84 875650

Lot size = 50

NICategory No. Of Applications Total No. of Equity

Shares appliedNo. of Equity

Shares allocated per Applicant

Ratio Total No. of Equity Shares allocated

850 16 13600 50 1:16 50

900 2 1800 50 1:2 50

1000 10 10000 50 1:10 50

1100 1 1100 50 FIRM 50

1200 3 3600 50 1:3 50

1250 1 1250 50 FIRM 50

1500 1 1500 50 FIRM 50

1550 1 1550 50 FIRM 50

1600 13 20800 50 2:13 100

…. …. …. …. ….

…. …. …. …. ….

1000000 1 1000000 5565 FIRM 5565

1688000 1 1688000 9394 FIRM 9394

2800000 2 5600000 15582 FIRM 31164

3195000 3 9585000 17753 FIRM 53259

3200000 7 22400000 17781 FIRM 124467

3400000 1 3400000 18892 FIRM 18892

3500000 1 3500000 19448 FIRM 19448

3600000 2 7200000 20004 FIRM 40008

Employees

CategoryNo. Of

Applications

Total No. Of

Equity Sharesapplied

No. of EquityShares

allocatedper

Applicant

Ratio

Total No. ofEquity Shares

allocated

50 1 50 50 FIRM 50

100 5 500 99 FIRM 495

200 1 200 199 FIRM 199

800 62 49600 794 FIRM 49228

QIB

Category Fls/Banks Flls MFs ICs PFs Others Total

No. of Equity Shares allotted

25391 1560685 188924 - - - 1775000

financials

• The financials are prepared as per section 11 of sebi regulations

Performance

Gyscoal Alloys Ltd.

• Director resigns• FII’s(24.32 per cent) have dumped their

holding• Unaudited results shows PAT to come down

from 426.48 to 491.68• Share price performance

Gyscoal

Gravita India Ltd.

• Gravita Board of Directors recommend 40% Dividend

• Gravita Board of Directors approved Employees Stock Option Plans

• Gravita Acquires M/s K M Udyog, Jammu• Consolidated Financial audited results show

profit has gone up from 1474.73 to 1232.37(in lacs)

• Share price performance

Gravita