Rakesh Jhunjhunwala offloading 4% stake via A2Z Maintenance & Engineering Services IPO

by khalid on 08/12/2010 · 0 comments

Indian Warren Buffett , billionaire investor Rakesh Jhunjhunwala is going to decrease its stake in A2Z Maintenance & Engineering Services Limited via IPO which is coming out on 8th December 2010. He is offloading about five lakh equity shares (representing 4% stake) through the IPO out of its total holding of 25 lakh shares ( representing 21% stake ). He invested in the company in 2006 below Rs 14 a piece. He will be the most beneficial investor in A2Z Maintenance and Engineering Services Limited. He will receive more than Rs 20 crore by selling five lakh shares at the higher end of the price band of Rs 400-410 per share, which was equal to the amount he invested in A2Z Maintenance in 2006. The total valuation of his holding in the company stands at Rs 494.09 crore, which means market cap of company will be more than Rs 3,000 crore.

Mittal and his family is the founder of the company and hold about 55% stake in the company that will reduce to about 50% after the issue. Rest of the equity is held by Rakesh Jhunjhunwala, Beacon India and India Equity Partners.

The IPO comprises a fresh issue of Rs 675 crore by the company and an offer for sale of upto 4,556,193 equity shares of Rs 10 each at the issue price by the selling shareholders. Upto 1 lakh equity shares will be reserved for subscription by employees, who will get shares at 5% to the issue price.

The proceeds of the public issue are proposed to be utilized to fund the company’s several projects across the renewable energy and waste management. The company diversified itself into waste management and plans to scale up this business after the IPO.

The Book running lead managers to the issue are DSP Merrill Lynch Limited, Enam Securities Private Limited, ICICI Securities Limited, IDFC-SSKI Private Limited, SBI Capital Markets Limited and YES Bank Limited.

Registrar of the Issue : Link Intime India Private Limited, Mumbai.

Stay tuned to BelltheBull Blog for more on Rakesh Jhunjhunwala !

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

Previous post:

Next post: