Net 4 India Ltd. Delhi 18.07.2001 Sharma Patiala House Salary Addl
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DRAFT OFFER DOCUMENT NET 4 INDIA LIMITED [Registration Number: 55-22649] [Originally incorporated as a public limited company under the provisions of the Companies act, 1956 on November 29, 1985 as “Mangla Chemicals Limited” & obtained Certificate for commencement of business on December 12, 1985 from The Registrar of Companies, Delhi and Haryana, New Delhi. The name was changed to “Trident Developers Limited” vide fresh certificate of incorporation dated April 25, 1994 and “Amulet Developers Limited” vide fresh certificate of incorporation dated October 13, 1998 and subsequently to “Net Four Internet.com Limited” vide fresh certificate of incorporation dated August 3, 2000 and finally to the current name “Net 4 India Limited” vide fresh Certificate of Incorporation obtained on February 28, 2001 from the said Registrar of Companies.] Registered Office B-4/47, Safdarjung Enclave, New Delhi 110 029, India (The Registered Office was earlier located at E-1/6, East Patel Nagar, New Delhi 110008 and was changed to S-527 Greater Kailash II, New Delhi 110048 w.e.f. 01.08.1993 and to 10-D Sagar Apts., 6, Tilak Marg, New Delhi 110001 w.e.f 20.07.1994 and to its present location w.e.f. 05.01.2000) Tel.: +91-11-2610 4192/93 Fax: +91-11-2610 2781 URL: http://www.net4india.com | Contact Person: Krishan Kumar; E Mail ID: [email protected] OFFER FOR SALE OF 20,68,200 EQUITY SHARES OF RS.10/- EACH FOR CASH AT A PREMIUM OF RS. 10/- (OFFER PRICE RS. 20/-) PER EQUITY SHARE AGGREGATING RS. 413.64 LAKHS (HEREINAFTER REFERRED TO AS ‘OFFER’). THE OFFER CONSTITUTES 12.73% OF THE PAID UP CAPITAL OF NET 4 INDIA LIMITED. THE FACE VALUE OF THE EQUITY SHARE IS RS. 10/- AND THE OFFER PRICE IS 2 TIMES THE FACE VALUE. GENERAL RISK Investments in equity and equity related securities involve a degree of risk and investors should not invest any funds in this Offer unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Offer for Sale. For taking an investment decision, investors must rely on their own examination of the Offeror/ Company and the Offer for Sale including the risks involved. The equity shares offered have not been recommended or approved by the Securities and Exchange Board of India (SEBI), nor does SEBI guarantee the accuracy or adequacy of this Offer Document. The attention of the investors is drawn to the ‘Risk Factors and Management Perceptions Thereof’’ appearing on page number___ of this Offer Document. OFFEROR’S AND THE COMPANY’S ABSOLUTE RESPONSIBILITY The Offeror and the Company having made all reasonable inquiries, accepts responsibility for and confirms that this Offer Document contains all information with regard to the Company and the Offeror, which is material in the context of the Offer, that the information contained in this Offer Document is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Offer Document as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. Lead Manager to the Offer Registrar to the Offer CENTRUM CAPITAL LIMITED MCS LIMITED SEBI Regn. No.:INM 000010445 SEBI Regn. No.: INR 000000056 UIN: 100016915 UIN: 1000000729 Khetan Bhawan, 5th floor, 198, J. Tata Road Sri Padmavati Bhavan, Plot No.93, Road No. 16, Churchgate, Mumbai 400 020 MIDC, Andheri (East), Mumbai 400 093 Tel: +91-22-22023838; Fax: +91-22-22046096 Tel: +91-22-28368681; 28201785; 28239874; Fax: +91-22-28201783 E-mail: [email protected] E-mail: [email protected]; [email protected] URL: http://www.centrum.co.in URL: http://www.mcsind.com OFFER PROGRAMME -----day Month xx, 2005 OFFER CLOSES ON: -----day Month xx, 2005 OFFER OPENS ON LISTING ARRANGEMENTS The equity shares offered through this Offer Document are proposed to be listed on The Stock Exchange, Mumbai (BSE) (Designated Stock Exchange) and are already listed on The Delhi Stock Exchange, New Delhi (DSE). The in-principle listing from The Stock Exchange. Mumbai (BSE) has been received vide its letter dated ______. DRAFT OFFER DOCUMENT TABLE OF CONTENTS I. DEFINITIONS AND ABBREVIATIONS ........................................................................................................................................................... i II. RISK FACTORS AND MANAGEMENT PERCEPTIONS THEREOF..............................................................................................................iii 1. Forward-Looking Statements; Market Data ..........................................................................................................................................iii 2. Risk Factors........................................................................................................................................................................................ iv III. INTRODUCTION........................................................................................................................................................................................... 1 1. Summary ............................................................................................................................................................................................. 1 2. General Information ............................................................................................................................................................................. 3 3. Capital Structure of the Company ........................................................................................................................................................ 5 4. Objects of the Offer.............................................................................................................................................................................. 9 5. Basic Terms of the Offer .................................................................................................................................................................... 10 6. Basis of Offer Price ............................................................................................................................................................................ 12 7. Tax Benefits....................................................................................................................................................................................... 13 IV. ABOUT NET 4 INDIA LIMITED.................................................................................................................................................................... 14 1. Industry Overview .............................................................................................................................................................................. 14 2. Business Overview............................................................................................................................................................................. 14 3. History and Corporate Structure......................................................................................................................................................... 19 4. Management...................................................................................................................................................................................... 22 5. Promoters of the Company ................................................................................................................................................................ 29 6. Exchange Rates................................................................................................................................................................................. 30 V. FINANCIAL INFORMATION........................................................................................................................................................................ 31 1. Financial Information of Net4india ...................................................................................................................................................... 31 2. Financial Information of Group Companies / Associate Companies.................................................................................................... 43 3. Changes in Accounting Policy in the last Three Years........................................................................................................................ 47 4. Management Discussion and Analysis of Financial Condition ............................................................................................................ 47 VI. LEGAL AND OTHER INFORMATION ......................................................................................................................................................... 51 1. Outstanding Litigations / Disputes/ Defaults ....................................................................................................................................... 51 2. Government / Statutory Approvals / Registrations .............................................................................................................................. 54 3. Statutory Approvals...........................................................................................................................................................................