BMTC IPO: Bangalore Metropolitan Transport Corporation IPO

There is a change is government and there is a change in the financial policies. The Karnataka Government is all set to unveil its plans to come out with an IPO or Initial Public offering for the profit making BMTC Bangalore Metropolitan Transport Corporation

What is the size of the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
BMTC IPO, Bangalore Metropolitan Transport Corporation IPO is expected to raise money in the range of Rs. 4,000 Crores.

How many shares will be offered for sale through the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
Around 15% stake will be diluted by the government through the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO. Around 30 Crore Shares will be issued by the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO.

Who are the BRLM, or book running lead managers or financial advisors to the issue of BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
The BMTC IPO, Bangalore Metropolitan Transport Corporation IPO will be taken care by SBI Capital Markets Ltd

What is so special about the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
BMTC holds the distinction of being the first government run transport organization which is running in profit. It will also be the first state-run urban transport company in the country to come out with a public issue.

What is the price band of the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
The shares of BMTC IPO, Bangalore Metropolitan Transport Corporation IPO will have the standard face value of Rs. 10 per share. The price band of BMTC IPO, Bangalore Metropolitan Transport Corporation IPO is expected to be in the range of Rs. 260 to Rs. 300 per share.

Is there any employee stock option plan by the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
Yes, the employees of BMTC Bangalore Metropolitan Transport Corporation will be eligible to get a maximum of 200 shares under the employee stock option scheme.

When will the BMTC IPO, Bangalore Metropolitan Transport Corporation IPO come to the markets?
The IPO dates for BMTC IPO, Bangalore Metropolitan Transport Corporation IPO is not yet finalized, but the transport ministry sources say that they are waiting for the markets to stabilize.

What are the business valuations, market outlook and risks in BMTC IPO, Bangalore Metropolitan Transport Corporation IPO?
The BMTC presently runs 5000 buses and is planning to increase it to 6000 in the next 2 years. It forms the backbone of Bangalore transport.
The risks are that there will be a metro rail introduced in Bangalore. That time, the commuters may shift from buses to metro rail, as that is faster, convenient and free of traffic woes. May be that time, the BMTC will take a hit on its profit.