Bajaj Corp plans 4.5 mn shares IPO

Nifty BSE | NSE 23/05/12 Are Mutual Funds betting on Nifty?

Bajaj Corp, one of India's leading producers of hair oils, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offer offering (IPO) of 4.5 million equity shares of Rs 5 each, at a price range to be determined.

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 for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the issue shall be available for allocation on a proportionate basis to retail individual bidders.

Kotak Mahindra Capital Company Limited is the sole book running lead manager and Karvy Computershare Private Limited is the registrar to the Issue.

The company intends to use the proceeds from the issue for product expansion, acquisitions and other strategic initiatives.

The company is a part of the Shishir Bajaj Group of companies. Amongst the countries leading business conglomerates, the Shishir Bajaj Group operates businesses in the consumer goods, sugar, power generation and infrastructure development industries throughout India. The "Bajaj" name is a well-recognized Indian brand that consumers associate with quality products at competitive prices.

The company has become India's third largest producer of hair oils and the largest producer of light hair oils, capturing an estimated 49.5% of the light hair oil market in calendar year 2009, according to the Nielsen Retail Audit Report.

The company's key product is Bajaj Almond Drops, a premium brand that is currently the market leader in the light hair oil segment according to Nielsen Retail Audit Report. In addition, it markets hair oil under the brand names Brahmi Amla, Amla Shikakai and Jasmine Hair Oil.  The company also produces oral care products under the brand name Bajaj Black Tooth Powder.