Fidelity Equity Fund set for launch
Mumbai: US-based Fidelity Fund Management Private Ltd (FFMPL) is set to float its first mutual fund product, the Fidelity Equity Fund. The open-ended growth scheme will remain open for subscription from March 21 to April 19, 2005.

The mutual fund will charge an entry fee of 2.25 per cent for investments less than Rs.5 crore. It would also levy an exit load of one per cent for redemptions from lump sum investments held for less than six months. According to the fund officials, the scheme will contain a portfolio of about 75 stocks.

The scheme is aimed at generating long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities.
Back to News Review index page  

SEBI fines Prudential Capital
Kolkata: Years after it went under, the Prudential Capital Markets has been slapped with a fine of Rs10 lakh by SEBI.

The regulator has in an order referred to a violation of section 15C of the SEBI Act and charges established against the company, which has failed to redress grievances of investors - a default that is in fact continuing till date. The penalty will have to be paid by the official liquidator (OL) appointed by the Calcutta High Court from the company's reserves.

Prudential had become a household name among investors, especially in the East, thanks to its activities in the capital market and efforts at garnering funds from investors. The company went into liquidation in late 2001 and the Calcutta High Court appointed an OL pursuant to its winding up.

The SEBI order has listed 424 complaints against the company. These are as follows: 21 complaints in the Type I category, five in Type II, 94 in Type III, 284 in Type IV and 20 in Type V.
Back to News Review index page  

IVRCL to float public issue from March 18
Mumbai: IVRCL Infrastructure and Projects Ltd is entering the capital market with a public issue of face value Rs10 by way of raising Rs126 crore. The issue will also have a green shoe option of Rs.18.9 crore. The issue opens on March 18 and closes on March 23.

The number of shares to be issued and the issue price will be determined through a book-building process. The price band for the issue has been fixed in the range of Rs385-415 per equity share.

Up to 50 per cent of the issue will be offered on a discretionary basis to qualified institutional buyers and not less than 25 per cent will be available for allocation on proportionate basis to non-institutional bidders and the rest for allocation on a proportionate basis to retail individual bidders.

The proceeds of the issue would be used for investments in BOT/BOOT projects, purchase of capital equipment and repayment of debt. The estimated fund requirement for investment in BOT/BOOT projects is Rs40 crore, purchase of capital equipment Rs30 crore and repayment of debt/loan Rs49.7 crore.

Engaged in the construction of roads, highways, oil & gas pipelines and water projects, the company currently has an order book aggregating about Rs2,545 crore. In the first six months of the current fiscal, the company's total income was Rs423 crore.

As for the company's business strategy, efforts were being made to gain access to complex projects, including LSTK projects in roads, buildings and power transmission. The company was planning a foray into overseas projects, having identified some water projects in Oman and Sri Lanka. The company is among the four in the race for the Rs800-crore de-salination project in Tamil Nadu.
Back to News Review index page  

GSK Pharma board clears buyback of shares
Mumbai: The board of directors of GlaxoSmithKline Pharmaceuticals Ltd has approved the buyback of its equity shares from existing shareholders through the stock exchange route. The price will not exceed Rs800 per share.

The buyback will be up to a limit of Rs230.65 crore, or 25 per cent of the total paid-up equity share capital and free reserves of the company, a GSK note has said.

According to company officials, the operating performance of the company has significantly improved since 2001. The enhanced performance, together with income from the sale of properties, has resulted in substantial cash generation and a favourable liquidity position.

The note adds that pursuant to the buyback of shares and depending on the response to the buyback offer, the percentage holding of the promoters in the company would increase beyond the current holding of 49.15 per cent.
Back to News Review index page