By VS Fernando, IPO Analyst
Poor industry discounting, absence of project appraisal and fund monitoring by external agency, potential cost and time overruns, etc., make Innoventive Industries a less attractive buy.
| OFFER AT A GLANCE | |
| Name | Innoventive Industries Ltd |
| Offer Quantity | 1.83 cr to 1.88 cr Shares of Rs 10 each |
| % on Total Equity | 30.8% to 31.4% |
| Offer Amount | Rs 219.58 cr |
| Offer Price | Rs 117 to Rs 120 |
| Bid Quantity | 50 & Multiples of 50 |
| Bid/Offer Opens | April 26, 2011 |
| Bid/Offer Closes | April 28, 2011-QIB portion |
| April 29, 2011-Retail & Others | |
| Rated By | ICRA |
| Rating | 3/5 |
| Lead Managers | Axis Bank, Avendus Capital |
| Registrars | Karvy Computershare |
Issue objective
The company proposes to spend Rs 163 crore on expansion of capacity and repay high-cost term loans worth Rs 50 crore. The balance (Rs 6.58 crore) is meant for general corporate purpose.
Parentage
The company, originally known as Arihant Domestic Appliances Pvt. Ltd, was incorporated in 1991 by a different set of promoters for the manufacture and assembly of mixers, grinders and emergency lights. The present promoter-chairman, Chandu Chavan, joined the board in March 2002. The company
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