Sebi's ban on Arun Bajoria set aside
Mumbai: Securities Appellate Tribunal has set aside Sebi's order barring Arun Kumar Bajoria and his investment firm Mega Resources Ltd & Associates from accessing the capital market and dealing in securities for one year.

The takeover regulations of 1997 and other provisions used by Sebi to deal with failure on part of Bajoria and Associates to disclose their holding to Bombay Dyeing and Manufacturing Ltd does not empower the market regulator to totally ban dealing in securities, SAT said in its order.

Blocking the dealing in securities held by the appellant as a whole (other than Bombay Dyeing) for unexplainable reason would go against the interest of investors and market, it said.
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Krishna Bhagya to issue Rs 350 cr bonds
Mumbai: Krishna Bhagya Jala Nigam Ltd (KBJNL) is entering the capital market with a public issue of secured redeemable non-convertible debentures of Rs 5,000 each aggregating Rs 350 crore for cash at par.

The bond is at an interest rate of 11.70 per cent, to be paid annually. The bonds have a tenure of seven years and there is a call option at the expiry of five years. The subscription list opens on 27 March and closes on 22 April.

The bonds have been guaranteed by the Karnataka Government for timely payment of principal amount and payment of interest on due dates.

Crisil has assigned a rating of A+ (SO) indicating adequate degree of certainty with regard to timely payment of financial obligation of the instrument and ICRA has assigned a rating of LA+ (SO) indicating adequate safety.

The bonds will be listed on the Bangalore and Bombay and the National Stock Exchanges.
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Lord Krishna Bank plans IPO
New Delhi: Lord Krishna Bank is considering an initial public offering (IPO) and listing on leading stock exchanges.

The bank's rights issue, which concluded on 9 March, garnered Rs 35.77 crore pushing up its net worth to Rs 109.55 crore, LKB said in a statement. Shareholders were offered the rights issue at a premium of Rs 2 per share, in the ratio of 10 equity shares for every nine equity shares held.

The bank's capital adequacy ratio has improved from 12.90 per cent at the end of 31 December 2001, to 14.87 per cent on 15 February 2002, which is higher than the stipulated level of 9 per cent.

It posted a net profit of Rs 15.37 crore in the first nine months of current fiscal compared with Rs 94 lakh profit in the same period last fiscal.
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Jaiprakash Industries plans pref allotment
New Delhi: Jaiprakash Industries Ltd (JIL) has convened an extraordinary general meeting of its shareholders on 21 March to seek approval for a preferential allotment of 1,18,34,560 equity shares to Jaypee Ventures at Rs 35.85 per share.

Simultaneously, the company will also seek nod for acquiring 2,77,39,500 shares of Jaypee Hotels from Jaypee Ventures and 49,23,133 shares of Jaypee Hotels from Jaiprakash Enterprises Ltd at Rs 15.30 per share.

For the purchase of shares of Jaypee Hotels from Jaypee Ventures, Jaiprakash Industries will issue its shares to Jaypee Ventures as consideration for the transaction.

After acquisition of a 54.84 per cent stake, represented by 2,77,39,500 shares of Jaypee Hotels from Jaypee Ventures and 49,23,133 shares of Jaypee Hotels from Jaiprakash Enterprises, JIL's stake in Jaypee Hotels will increase to 72.17 per cent.
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