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Hanung Toys good issue: Experts say apply

Published on Fri, Sep 29, 2006 at 19:54 | Source : Moneycontrol.com

Updated at Fri, Sep 29, 2006 at 20:02

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Hanung Toys and Textiles, a manufacturer and exporter of stuffed toys and home furnishings, is open for subscription with a public issue of 95-lakh equity shares of Rs 10 each through a 100% book-building process.

The price band ranges between Rs 85 and Rs 95 per equity share. The net issue to the public is 90 lakh equity shares forming 35.73% of the post issue paid up capital of the company.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	Hanung Toys is an average issue. One can apply for this issue.
Manish Bhatt (Prabhudas Lilladher)	Apply	Investors should apply for Hanung Toys IPO at cut-off price. It is a good issue.
SP Tulsian (Investment Advisor)	Apply	Hanung Toys is a good issue. Investors can apply for this issue.
*PPFAS	Apply	Investors can subscribe to Hanung Toys IPO.

*(View taken from their reports)

Five-lakh equity shares are reserved for employees. 50% of the net issue shall be allotted on a proportionate basis to qualified institutional buyers, QIBs with 5% of the QIB portion available for allocation on a proportionate basis to mutual funds. Not less than 15% of the net issue will be available for allocation on a proportionate basis to non- institutional bidders and not less than 35% will be available for retail individual bidders on a proportionate basis.

Through a shareholders' agreement in February 2006, Bennet, Coleman and Co has acquired 5 lakh equity shares at a price of Rs 150 per share (Rs 7.5 crore), constituting 1.99 per cent of the post issue equity share capital of the company.

The issue proceeds will part-finance an integrated textile unit at Roorkee in northern Uttaranchal.

The total cost of the unit is Rs 168.44 crore and the company proposes to raise rupee term loans from banks/financial institutions. The term loan component is Rs 90 crore.

Karvy Investor Services and Anand Rathi Securities are the book running lead managers for the issue and Karvy Computershare is the registrar. The issue closes on October 5.