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  • Bajaj Corp IPO opens on 2nd August 2010 Price Band fixed at Rs. 630 to Rs. 660

    Published on July 29, 2010

    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.