Well begun is half done. This maxim applies in corporate finance where determining the actual funds requirement and its structuring is critical for the long term health of the project. Close working with the clients is essential to determine this requirement accurately. On the basis of a realistic Business Plan, we put together necessary Information Memoranda for circulating amongst the prospective investors / lenders. Naturally, our experience and knowledge of their industry and sectoral preferences helps.Having been Advisors to numerous Initial Public Offerings (IPOs), we advise clients on choice of Merchant Bankers, Brokers, Printers, and other related agencies. Liaison with client’s communication agency is done for an effective communication during Road Shows. Our experience with merchant bankers has led us to believe that a “hands-on” approach delivers maximum value to our clients.

Alps Industries Limited was planning to set up an integrated textile mill at a cost of Rs. 200 million in 1994. The company wanted to raise funds from an IPO for this purpose and retained our services as Advisors to the Public Issue. We helped the client firm up the project details and structured a suitable means of finance. The public offering amounted to Rs. 120 million. The client requested us to be actively involved with all major decisions such as size of issue, pricing, identification of Co-Lead managers, devising communication strategy and related activities. We also made presentations to Mutual Funds for placement of equity of Rs. 20 million. We actively participated in all meetings with brokers and media all over India. The public offering was successfully made in April 1995.The client subsequently retained our services for its expansion project for which we tied up loans for Rs. 87 million from Industrial Development Bank of India, a major financial institution of India.

United Wheels Limited, a large manufacturer-exporter of bicycle components near Delhi, retained us for funding their joint venture with Alfred Thun GmbH. Keeping in view the size of the funds requirement and other strategic factors, we advised them to make a private placement with an investment company instead of going public. The client accepted our suggestion. We discussed the proposal with some prospective investors and placed the shares at a good premium with an investment company belonging to a large industrial group of India.

Alps retained us for their integrated textile mill project and further expansion.

How we helped United Wheels Limited to setup their JV with Alfred Thun GmbH