Business

FINE ORGANIC INDUSTRIES LIMITED Initial public offering of equity shares to open on June 20, 2018

June 20, 2018
PMT

 

      FINE ORGANIC INDUSTRIES LIMITED

*APPLICATIONS SUPPORTED BY BLOCKED AMOUNT (ASBA): All Bidders except Anchor bidders are required to mandatorily utilize ASBA. For details on the ASBA process, please refer to the details given in the ASBA Form and Abridged Prospectus and also please refer to “Offer Procedure” on page 477 of the RHP. ASBA Forms can also be downloaded from the websites of BSE and NSE. ASBA Forms can be obtained from Self Certified Syndicate Banks (SCSBs), the list of which is available on the website of SEBI at http://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognised=yes, Members of Syndicate, Registered Brokers, Registrar and Share Transfer Agents (RTAs) and Collecting Depository Participants (CDPs).

Initial public offering of equity shares of face value Rs. 5 each (the “Equity Shares”) to open on June 20, 2018* and to close on June 22, 2018

Price Band: Rs. 780 to Rs. 783 per Equity Share

Mr. Devan Kampani (JM Financial Limited), Mr. Tushar Shah (Chief Financial Officer, Fine Organic Industries Limited), Mr. Prakash Kamat (Chairman, Fine Organic Industries Limited), Mr. Mukesh Shah (Managing Director, Fine Organic Industries Limited), Mr. Jayen Shah (Chief Executive Officer, Fine Organic Industries Limited) and Mr. Jibi Jacob (Edelweiss Financial Services Limited) at Fine Organic Industries Limited IPO Press Conference held in Mumbai today.

Mumbai, June 14, 2018: Fine Organic Industries Limited (the “Company”) proposes to open on Wednesday, June 20, 2018*, an initial public offering of 7,664,994 Equity Shares through an offer for sale by the promoter group selling shareholders (the “Offer”).

* The Company and the Promoter Group Selling Shareholders may, in consultation with the Book Running Lead Managers, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid / Offer Period shall be one Working Day prior to the Bid / Offer Opening Date.

The Bid/Offer Period closes on Friday, June 22, 2018.

The Price Band for the Offer is from Rs. 780 to Rs. 783 per Equity Share. Bids can be made for a minimum lot of 19 Equity Shares and in multiples of 19 Equity Shares thereafter.

The Equity Shares are being offered through the red herring prospectus dated June 11, 2018 (the “RHP”) registered with the Registrar of Companies, Maharashtra at Mumbai.

The Equity Shares are proposed to be listed on BSE and NSE.

The Book Running Lead Managers (“BRLMs”) to the Offer are JM Financial Limited and Edelweiss Financial Services Limited. Karvy Computershare Private Limited is the Registrar to the Offer.

The Offer is being made in terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”),  this is an Offer for such percentage of the post-Offer paid-up Equity Share capital of our Company that will be at least ₹ 4,000 million calculated at the Offer Price. The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the SEBI ICDR Regulations, wherein 50% of the Offer shall be allocated on a proportionate basis to QIBs (“QIB Portion”), provided that our Company and the Promoter Group Selling Shareholders, in consultation with the Book Running Lead Managers, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”), at the Anchor Investor Allocation Price. At least one-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Offered Shares shall be added to the Net QIB Portion. 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Offered Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, shall participate in the Offer through an Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”). Anchor Investors are not permitted to participate in the Offer through ASBA Process.

Mr. Mukesh Shah (Managing Director, Fine Organic Industries Limited) while addressing the media during the Fine Organic Industries Limited IPO Press Conference held in Mumbai today.

For details, see “Offer Procedure” beginning on page 477 of the RHP.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.

Disclaimer:

FINE ORGANIC INDUSTRIES LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offering of its Equity Shares and has filed the RHP with the RoC. The RHP is available on the website of SEBI at www.sebi.gov.in, NSE at www.nseindia.com, BSE at www.bseindia.com and is available on the website of the BRLMs, i.e. at www.jmfl.com and www.edelweissfin.com. Any potential investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, please refer to section titled “Risk Factors” on page 15 of the RHP and section titled “Risk Factors” of the Prospectus, when available. Potential investors should not rely on the Draft Red Herring Prospectus filed with SEBI for making any investment decision.

This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, no Equity Shares are being offered for sale in the United States in the Offer.