Browns Investments IPO opens today

Thursday, 23 June 2011 01:23 - - {{hitsCtrl.values.hits}}

The Rs. 250 million worth Initial Public Offering (IPO) of Browns Investments Ltd. (BIL) will have its official opening today.

BIL’s issue is 50 million ordinary voting shares at Rs. 5 each. The IPO has been up for subscription since 13 June. Given the small size of the offering as well as good prospects for BIL, most analysts expect the issue to have been fully subscribed and will close today itself.

BIL is a diversified company with interests in leisure, plantations, manufacturing, construction, cable manufacturing, agriculture and hydro power generation. It has plans to further expand in leisure as well as enter real estate.

Proceeds from the IPO will be used to finance a new 150 room Samudra Beach Hotel in Kosgoda via subsidiary Samudra Beach Resorts Ltd.

The company revealed yesterday that the updated Net Present Value (NPV) is approximately Rs. 248 million. This is following BIL receiving inquiries from investing public about certain differences in the figures relating to feasibility study and the forecasted financial statements in the prospectus.

BIL said the differences arose from the fact that the feasibility study was prepared in the beginning of February 2011 by an independent external party whilst the forecasted financial statements were prepared by the Group in end March 2011.

Managers to the Browns Investments IPO is Taprobane Holdings Ltd. and Registrars is SSP Corporate Services Ltd.