MFs withdraw from equity
Mumbai: The massive redemption pressures compelled mutual funds (MFs) to sell in equity resulting in them pulling out a massive Rs 1,735 crore since the beginning of the current financial year. The abrupt decline in the net asset value (NAV) of equity has also forced them to go in for heavy selling. From April to September 5, the funds made total purchases of Rs 3,610 crore against a gross sales of Rs 5,345 crore.

While the net outflow figure was at Rs 1,735 crore during the period, Rs 2,766 crore was the net outflow for the full year 2000-01. The net sales refused to come down in spite of the 80 to 90 per cent plunge in the daily volumes on the bourses.

A total of Rs 376.68 crore was withdrawn from the equity market during the course of August alone. By and large as the equity funds NAVs fell lower, MFs chose to keep much of their corpus in cash. Inflows into equity schemes are drying up rapidly, the total inflows into equity funds between May to July 2001 were only Rs 266 crore, forcing fund managers to opt for liquidity.
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Bharti Televentures to offer stake via IPO
Mumbai: Telecom major Bharti Televentures is likely to offer ten per cent equity to public via its proposed over $200 million initial public offering in the current fiscal.

Bharti Televentures would offer ten per cent stake through issue of fresh equity, via the public offer. The company would file offer document with Securities and Exchange Board of India this month, according to company sources.

In Bharti Televentures, 54 per cent stake is with Bharti Telecom, 18 per cent equity with SingTel, 21 per cent with Warbug Pincus and the balance is with other investors.

The IPO size was likely to be over $200 million (Rs 940 crore), sources said adding that the details including the exact size of the IPO were yet to be worked out.

The company has appointed Morgan Stanley and Meryll Lynch as the lead managers for the proposed issue.

Bharti has emerged the lead player winning eight circles of Mumbai, Maharashtra, Tamil Nadu, Kerala, Madhya Pradesh, UP (West), Haryana and Gujarat for the fourth cellular slot in 17 circles, taking its total bid amount to Rs 609.69 crore.

The company currently operates its cellular services in Himachal Pradesh, Delhi, Karanataka, Andhra Pradesh, Chennai and Kolkata.

Bharti group has already secured the LOI for domestic long distance operations.
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