IL&FS to file maiden offer prospectus in two weeks

IL&FS Investsmart, the broking and investment banking arm of IL&FS, is expected to file a draft prospectus for its initial public offer (IPO) in another two weeks. The company is planning to raise around Rs 100 crore from the market.

Hemang Raja, managing director and chief executive officer, said the details of filing an offer document with the securities regulator are being worked out.

"Right now we are consolidating our tie-up with new partners." The company will also be holding a board meeting in the first week of May, where a formal decision on its public offering will be taken.

Investsmart will be the third broking company to go public after Indiabulls and India Infoline, whose issue opened for bidding today.

In November last year Softbank Asia Infrastructure Fund LP (SAIF) and E*Trade Financial picked up a 34 per cent stake in Investsmart for Rs 64 crore.

They bought out a part of the stakes held by IL&FS and ORIX Corporation of Japan. After the stake sale IL&FS now holds 51.33 per cent in Investsmart while ORIX continues to hold 14.67 per cent in the broking firm.

E*Trade Financial has routed its investment through its wholly owned subsidiary, E*Trade Mauritius.

The company has been looking at going public for quite sometime now, but was waiting for a strategic partner to join it.

Raja said the IPO would depend on the state of the stock markets and would entail a fresh offering of equity and an expansion in capital.

Indiabulls, the first broking company to go public, offered its shares at Rs 19 a share but since then has had a dream run on the bourses. India Infoline has priced its shares aggressively at Rs 70 to 80 a share.