Trimax planning an IPO; BanyanTree and Zephyr will benefit

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Trimax planning an IPO; BanyanTree and Zephyr will benefit
Trimax plans to come out with an IPO this year which may be valued at Rs 800 crore. BanyanTree Growth Capital Fund and Zephyr Peacock, the private equity funds may be triple their returns from investments in Trimax.

These two funds will sell a part of their holdings which will comprise of 25-30% of the public offering. "The IPO may also comprise an offer for sale, apart from the fresh issuance, resulting in a dilution of around 25-30%," said a banker to the related to the deal.

The company may still be skeptical about it as the IPO's recently haven't tasted much of success. The company has hired Kotak Mahindra, SBI Capital and Religare as lead book managers. "We have appointed bankers and are in the process of filing the draft red herring prospectus with market regulator Sebi," Surya Prakash Madrecha, chairman, Trimax said.

The company would use the proceeds to fund its domestic and overseas expansion and may pay a debt of around Rs 123 crore which the company holds as of now. The company has been doing well recently as it clocked a sales of RS 405 crore for the nine months ended December, 2010.

Read more about: ipo, bse, sebi, sbi
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