EMAMI LIMITED 2005.pdf

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    BOOK RUNNING LEAD MANAGER (“BRLM”)

    PROSPECTUS

    Dated : March 15, 2005

    Please read Section 60B of the Companies Act, 1956

    100% Book Building Issue

    (Incorporated on March 11, 1983 as A.M.P Udyog Viniyog Limited under the Companies Act, 1956. In 1994, Himani Ltd was merged with AMP Udyog Viniyog Ltd., vide Hon’ble Calcutta High Court order dated February 8, 1994 and its name was changed as per fresh certificate of  incorporation dated May 5, 1994. In 1998, Emami Ltd was then merged with Himani Ltd. vide Hon’ble Calcutta High Court order dated July

    21, 1998 and its name was changed as Emami Ltd. as per fresh certificate of incorporation dated September 1, 1998). Registered Office: 6A, R.N. Mukherjee Road, Stephen House, Kolkata–700001 (Formerly located at 9, Old China Bazar Street,

    Kolkata – 700001 and subsequently shifted to 179, Bangur Park, Rishra, Hooghly – 712248 and 8, Bentinck Street, Taher Mansion, Kolkata–700001) (For further details of Registered Office, see the chapter on History and Other Corporate Matters at Page 62)

    Tel: +91-33- 2248 7651/52/53/54, Fax: +91-33- 2210 0879

    e-mail: publicissue@emamigroup.com, website: www.emamigroup.com

    Public Issue of 50,00,000 Equity Shares of Rs. 2/- each for cash at a price of Rs. 70 per Equity Share by Emami Ltd (hereinafter referred to as the “Company”) aggregating Rs. 3500  lacs (hereinafter referred to as the “Issue”). Out of this, 5,00,000 Equity Shares of Rs.2/- each for cash at a price of Rs. 70 per Equity Share aggregating Rs. 350  lacs will be reserved for subscription by Employees in India of Emami Ltd. (the “Employee Reservation Portion”). Therefore, the net Issue to the public will be of 45,00,000 Equity Shares of Rs. 2/- each for cash at a price of Rs. 70  per Equity Share aggregating Rs. 3150  lacs.

    The issue would constitute 8.18% of the fully diluted post issue paid-up Equity Share capital of the Company.

    ISSUE PRICE OF Rs. 70 PER EQUITY SHARE OF FACE VALUE OF Rs. 2/- EACH

    The Issue is being made through the 100% Book Building Process wherein up to 10% of the issue is reserved for Employees of the Company. Up to 50% of the net Issue to the public shall be allocated on a discretionary basis to Qualified Institutional Buyers (“QIBs”). Further, not less than 25% of the net Issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 25% of the net Issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject to valid bids being received at or above the Issue Price.

    REGISTRAR TO THE ISSUE

    ISSUE PROGRAMME

    BID/ISSUE OPENED ON : FRIDAY, MARCH 4, 2005 BID/ISSUE CLOSED ON : THURSDAY, MARCH 10, 2005

    RISKS IN RELATION TO ISSUE

    The face value of the Equity Shares is Rs. 2/- and the Issue Price is 35 times of the face value. The Issue Price (as determined by the Company in consultation with the Book Running Lead Managers (“BRLMs”) on the basis of assessment of market demand for the Equity Shares by way of book building) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares of the Company or regarding the price at which the Equity Shares will be traded after listing.

    GENERAL RISKS

    Investment in Equity and Equity related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in

    this Issue. For taking an investment decision, investors must rely on their own examination of the Issuer and the Issue including the risk involved. The Equity  Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (SEBI) nor does SEBI guarantee the accuracy or adequacy of this document. Specific attention of investors is invited to the statement of Risk Factors on page No. [viii] of this Prospectus.

    COMPANY’S ABSOLUTE RESPONSIBILITY

    The Company, having made all reasonable inquiries, accepts responsibility for, and confirms that this Prospectus contains all information with regard to the Company and the Issue, which is material in the context of the Issue, that the information contained in this Prospectus is true and correct in all material respects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.

    LISTING

    The Equity Shares of the Company are already listed on The Stock Exchange, Mumbai (BSE) and The Calcutta Stock Exchange Association Ltd (CSE). The Equity Shares offered through this Prospectus are proposed to be listed on BSE and CSE. The in-principle approval of BSE and CSE has been received on February 01,2005 and February 16, 2005 respectively. The Stock Exchange, Mumbai is the Designated Stock  Exchange.

    ANAND RATHI SECURITIES PRIVATE LIMITED

    J.K. Somani Building, 3rd Floor,

    British Hotel Lane, Bombay Samachar Marg

    Fort, Mumbai-400 023.

    Tel: (+91-22) 5637 7000 Fax: (+91-22) 5637 7070

    Email: emami@rathi.com

    DATAMATICS FINANCIAL SOFTWARE & SERVICES LTD

    Plot No.A.16 & 17, MIDC, Part B, Crosslane, Marol, Andheri (E)

    Mumbai 400093

    Tel: 022 28375519-24, 28345824 Fax: 022 28350217

    Email: emami@datamatics.com

      

    CMYK

    CMYK

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    TABLE OF CONTENTS

    PAGE

    SECTION I: GENERAL ......................................................................................................................................................... i

    Definitions and Abbreviations .................................................................................................................................................. i Certain Conventions .................................................................................................................................................................. vii

    Forward-Looking Statements; Market Data............................................................................................................................. vii

    SECTION II: RISK FACTORS...................................................................................................... ....................................... viii

    SECTION III: INTRODUCTION ............................................................................................ ............................................. 1

    The Issue ................................................................................................................................................................................... 1

    Summary .................................................................................................................................................................................... 2

    General Information .................................................................................................................................................................. 6

    Statement of Inter-Se Allocation of Responsibilities ............................................................................................................... 12

    Capital Structure of the Company ............................................................................................................................................ 17

    Objects of the Issue ................................................................................................................................................................... 25

    SECTION IV: OFFERING INFORMATION ....................................................................................................................... 30

    Terms of the Issue ..................................................................................................................................................................... 30

    Issue Structure ........................................................................................................................................................................... 32

    Issue Procedure .......................................................................................................................................................................... 34

    Basis for Issue Price .................................................................................................................................................................. 51

    SECTION V: ABOUT THE COMPANY ................................................................................................... ........................... 53

    Industry Overview .................................................................................................................................................................... 53

    Present Business of the Company............................................................................................................................................ 56

    Brief History of the Company and Other Corporate matters