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Birla
Mutual penalized for non-compliance
Kolkata: The Securities and Exchange Board of India
has penalised the Birla Mutual Fund for a sum of Rs75,000,
for failing to comply with key provisions of SEBI (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997.
The Birla MF was found to have acquired over 2.5 lakh
shares of Subex Systems Ltd (SSL) in 1999 under various
schemes, constituting 7.06 per cent of the SSL's paid-up
capital. This entitled it to exercise more than 5 per
cent of the voting rights of the company, an order passed
by SEBI says. The acquirer failed to make the necessary
disclosures to SSL about the acquisition, within the period
prescribed under Regulation 7(1) and (2) of the takeover
norms.
Adjudication proceedings were initiated against Birla
MF by the regulator and a show-cause notice was issued.
Birla MF pointed out that, as per the half-yearly audited
report for September 30, 1999, the share capital of SSL
appearing in the balance sheet was Rs31,92,1000 and hence
5 per cent of the share capital amounted to Rs15,96,050.
None of the schemes crossed the 5-per cent limit as on
that date.
Subsequently, SSL made a preferential allotment of 3,30,800
shares, in which Birla Advantage Fund was allotted 30,000
shares. As a result, the scheme crossed the limit. Hence,
exceeding the limit was not due to fresh purchase but
a consequence of the preferential allotment done by SSL.
But at a hearing earlier this month Birla MF officials
deviated from their earlier stand and admitted they had
not complied with Regulation 7(1) and (2).
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SPL
Industries files for IPO of Rs.60 crore
Mumbai: SPL Industries, a Delhi-based knitwear and
garment manufacturer, plans to make a public offer for
Rs60 crore in order to fund capacity expansion and has
filed a red herring prospectus with SEBI for this purpose.
The company is expecting to part-finance its expansion
with a public issue of 90 lakh equity shares of Rs10 each
for cash at a premium through the 100 per cent book-built
route. Of the issue size, about Rs35 crore will go towards
expansion and the rest towards working capital expenses.
The total expansion cost is Rs41.83 crore. IDBI has sanctioned
a term loan of Rs10 crore under the TUF scheme, of which
Rs5 crore has been disbursed. The company has placed orders
for machinery worth Rs20 crore.
Post-IPO, the promoter shareholding would be diluted by
31.03 per cent. Its book running lead manager for the
issue is Karvy Investor Services and co-book running lead
manager is UTI Securities.
SPL also plans to add a new plant each for a yarn dyeing
and the production of woven garments. The company is ramping
up capacities because existing clients, such as GAP and
JC Penney, have increased the quantum of orders. Other
buyers have also asked the company to execute more orders.
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