ICICI Bank Ltd, the largest commercial bank of India by market value, has completed its consolidated fund-raising exercise of $4.3 billion (Rs.17,500 crore) with a green shoe option of $644 million (Rs.2,625 crore), the largest ever public capital raising exercise by an Indian company. State-owned largest oile explorations and production company Oil & Natural Gas Corporation Ltd had earlier raised $2.58 billion in 2004.

ICICI Bank announced that the domestic public issue of equity shares of $2.1 billion (Rs.8,750 crore), which was open from June 19, 2007 to June 22, 2007, was priced at $23.1 (Rs.940) per equity share. The issue, which had a green shoe option of $322 million (Rs 1,312.5 crore), was subscribed 11.5 times with the Qualified Institutional Buyers category subscribed 21.6 times, Non Institutional Investors category subscribed 6.1 times and Retail Individual Investors category subscribed 1.0 time.

The Bank's American Depositary Share (ADS) offering of $2.14 billion has been priced at $49.25 per ADS, translating into a price of approximately Rs.1,002.5 per equity share and representing a premium of approximately 6.6% over the domestic issue price. Each ADS represents two equity shares of the Bank. The ADS offering has a green shoe option of $0.32 billion.

Housing Development and Infrastructure Ltd (HDIL), real estate developer and part of Wadhawan Group based in Mumbai, the financial capital of India, is entering the capital markets with its initial public offering (IPO) to raise upto Rs.1,485 crore ($363 million). The IPO, opened from June 28-July 3, will offer 2.97 crore equity shares of Rs.10 (24 cents) face value each at a price band of Rs.430($10.5)-Rs.500 ($12.2) each. While the net issue will constitute 13.86% of the fully-diluted post-issue equity capital of the company, the dilution will be 15.65% if the green shoe option is fully exercised. The global coordinators and book-running lead managers to the issue are Kotak Mahindra Capital Company Ltd, investment banking arm of India’s Kotak Mahindra Bank Ltd & U.S.-based Goldman Sachs Group Inc and Enam Financial Consultants, one of the leading financial services firm.

Max India Ltd, a diversified group having interests in healthcare, clinical research, financial services (life insurance) and speciality plastic products based in the national capital Delhi, has raised $244 million (Rs.1,000 crore) through a qualified institutional placement (QIP), which was subscribed 2.3 times by group of investors, spread globally.

The QIP raises FII holding in the company to 39% from around 26% earlier. Max India has an investment limit of 49% for FIIs. The company has issued 41.67 million new shares of face value $0.05 (Rs.2) each at a price of $5.85 (Rs.240) per share. Max India has allocated the shares to a group of 24 investors represented by 42 investment accounts.

The new shares aggregate 18.8% of the fully diluted equity base of the company. About 40% of the allocation went to U.S. based investors while the remainder was split evenly between investors in Asia and Europe.

Mumbai-based Business Process Outsourcing (BPO) services provider Intelenet Global Services Pvt Ltd has announced a management buy-out (MBO) under which the existing shareholders Housing Development Finance Corporation (HDFC) of India and the U.K. headquartered global financial services company Barclays PLC will transfer their ownership of Intelenet to a company jointly owned by U.S. based private equity investor Blackstone Group and the current management team of Intelenet.

Under the terms of the transaction, Intelenet will continue to be led by current CEO Susir Kumar and the existing management team. Although the deal value has not been disclosed by the company, media reports have pegged the amount at $200 million.

India Hospitality Corp (IHC), the AIM-listed special purpose acquisition corporation (SPAC) focusing on hospitality, leisure, tourism, travel and related businesses, has acquired Mumbai-based Mars Restaurants and its sister concern SkyGourmet Catering for about $110 million (Rs.450 crore) from Malaysia-based private equity fund Navis Capital Partners and the founder Sanjay Narang.

Navis Capital and Sanjay Narang will get $91.6 million in cash and the rest in IHC ordinary shares with the completion of the transaction. They will also get additional consideration if the businesses achieve certain performance targets. Under the agreement, Navis and its affiliates will also be granted an option to subscribe for up to $75 million in cash for new IHC ordinary shares, which, if exercised in full, would result in its ownership interest in IHC increasing to about 20.7% on a fully diluted basis.

The Indian Film Company, a fund promoted by Indian TV broadcasting group Television18 India Ltd for investing in Indian films, has raised £55 million (about $109 million or Rs.450 crore) on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). Network 18, a holding company of the TV18 Group, holds about 20% stake in the Indian Film Company. At present, the company has signed about 14 films, and looks forward to invest in others. It intends to either acquire or produce about 40-50 films every year, which is about 20% of roughly 250 Hindi films made in India every year. The company got listed on AIM on June 18, rising as much as 20% on the debut to 120 pence. The investment banker for the issue was U.K.-based Elara Capital PLC.

Indian film-distributor and producer UTV Motion Pictures has raised $77.33 million (Rs.317 crore) through its listing on the Alternative Investment Market (AIM) of London Stock Exchange. The Isle of Man incorporated UTV Motion Pictures Plc, a subsidiary of UTV Software Communications Ltd, floated its initial public offer (IPO) of 24.1 million shares of a face value of $0.05 each (comprising of 23.17% of the equity post-issue) at $2.90 per share. It has also further allotted 25.28 lakh shares (1.83% post-issue equity) under the greenshoe option. With the total float of 25% of its post-issue equity, the company is valued at more than $300 million (Rs.1,200 crore).

India’s second largest domestic courier company First Flight Couriers Ltd has secured private equity funding of $26.24 million (Rs.107.5 crore) from Temasek Holdings, the state-owned investment company of Singapore. Temasek, through its Mauritius-based subsidiary Dunearn Investment, is picking up 27.74% equity by way of preferential allotment of 4.13 million shares at a price of $6.35 (Rs.260.47) per share. First Flight has annual revenue of about $75 million (Rs.300 crore).

Cadila Healthcare Ltd, the fifth largest pharmaceutical company in India has signed an agreement to acquire 100% stake in Quimica e Farmaceutica Nikkho do Brasil Ltda. (Nikkho), a privately held mid-sized pharmaceuticals company in Brazil. The consideration paid represents sales multiple of one, as Nikkho, a profit making company, had posted sales of $26 million for the Calendar Year 2006. The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly-owned subsidiary of the Cadila Healthcare. With the group already present in the pure generics market, this strategic acquisition brings in an added advantage of making a foray in the 'branded generics' business in Brazil.

K.K. Birla Group-founded knowledge Process Outsourcing (KPO) services provider ISGN Technologies Ltd has received $25 million in funding from venture capital firms New Enterprise Associates (NEA), one of the world's leading venture capital firms focused on information technology and healthcare investments that has more than $8.5 billion under management and NEA-IndoUS Ventures (NEA-IUV), a venture capital firm based out of India and the U.S. sponsored by NEA and co-founded by Vinod K. Dham and Vani Kola.

As part of the investment, Menlo Park, Calif.-based NEA and NEA-IUV will, together receive three appointments to the ISGN board. ISGN has recently adopted inorganic route to enhance its presence in the U.S. mortgage segment by acquiring the mortgage software division of Fair Isaac Corporation, a U.S.-based provider of predictive technology to the financial services industry, and Dynatek, a U.S.-based provider of mortgage automation software for retail and wholesale lenders.

Bangalore, the IT hub of India-based youngest and fastest growing pharma products manufacturer Strides Arcolab Ltd has announced signing a definitive agreement to acquire 100% of Grandix Pharmaceuticals Limited and its subsidiary Grandix Laboratories Limited on a cash and debt free basis valuing Grandix at about $24 million (Rs.100 crores). According to Strides Arcolab, the transaction is accretive to its EPS. Grandix is a branded pharmaceutical company mainly focused in the South of India. For the FY 2006, Grandix posted sales of $11.80million (Rs.48.50 crores) and EBITDA of $2.60 million (Rs.10.89 crores). Pricewaterhouse Coopers acted as an independent valuer of the transaction.

IPO Announcements

The Board of Directors of Jet Airways, the Mumbai-headquartered full service airline, has approved the Rights Offering of an amount of up to $400 million. Further decisions including the pricing and basis etc. will be taken by the Committee of the Board which has been empowered to do so. Jet Airways, alongwith its subsidiary Sahara Airlines Ltd that is being renamed as Jetlite, commands about 32% market share of the Indian aviation industry.

Omaxe Ltd, one of the leading real estate developers in north-India is planning to raise about $300 million-$400 million through a domestic initial public offering (IPO) in July. Investor allocations will be on July 16 and the company will list on August 2, according to a term sheet distributed recently. Some of the media reports, however, have suggested that the issue size might be up to $340 million (Rs.1,400 crore). The Delhi-based real estate developer Omaxe had annual sales of about $400 million in 2006. It has a land bank of more than 3,000 acres and 47 projects under development. Stock market regulator Securities and Exchange Board of India (SEBI) has approved its IPO in May 2007. The IPO of 17.8 millon shares would constitute 11.2% of the fully diluted post-issue paid-up capital of the company if the green shoe option of additional 1.75 million equity shares is exercised, and 10.3% if the option is not exercised. The global coordinators for the issue are DSP Merrill Lynch, Citigroup Global Markets India and UBS Securities India.