VCCircle

Tucked below in this Business Standard article is that Mumbai-based investment bank and broking house Edelweiss Capital has filed for IPO. It's an important bit of news, since the IPO was expected in 2008. Edelweiss has apparently made the filing with market regulator SEBI last week. (However, SEBI is yet to put up the document on the website).

BS report further says that Edelweiss plans to offer 8.3 million equity shares of Rs 5 each at a premium to be decided later. It plans to dilute about 10.92 per cent post-issue. It plans to use a portion of the proceeds of the issue to buy office space of about 30,000 sq ft either for ECL Finance or for Edelweiss Securities. The company will also make investments in its unlisted subsidiaries. The 12-year old Edelweiss has been one of the fastest growing ibanks. It had consolidated total income was Rs 371 crore and the consolidated profit after tax of Rs 109 crore (for 2006-07), according to BS.

Edelweiss has reportedly raised capital from Heliconia Pte Ltd (a wholly-owned subsidiary of GIC Ventures), Greater Pacific Capital, Galleon International, Sequioa Capital, Shuaa Capital and Lehman Brothers (2 per cent). However, most of these investments are not announced officially.

The IPO of Motilal Oswal, a broking firm with presence in investment banking, venture capital advisory and wealth management, opened yesterday and has got a significant response from investors with the issue oversubscribing 1.9 times on day one.