Investors Forum seeks probe into price rigging of public sector banks
Mumbai: The Investors' Grievances Forum (IGF) has demanded an inquiry by the Securities and Exchange Board of India (SEBI) into alleged price rigging in the shares of three public sector banks - Oriental Bank of Commerce (OBC), Punjab National Bank and Allahabad Bank - at the time of their public offering during March-April.

"Large-scale price rigging and abnormally high trading manipulation took place at the time when the three banks came to market with their public offers in the last few weeks," the IGF President, Kirit Somaiya, has said in a release here.

Seeking an inquiry into all public issues, he said the role of foreign institutional investors should be investigated for alleged rigging of prices of bank stocks.

The share price of PNB was around Rs361 at the end of January. But, at the time of public issue on March 7, it went up to Rs520 and subsequently, after the issue, it came down to Rs349. The issue price was fixed at Rs390, IGF said. On Friday, the stock closed at Rs366.20 on the BSE.

In the case of Allahabad Bank's public issue, in the month of April, the issue price was fixed at Rs82 per share. In February, the share was quoted at Rs69 and trade quantity was 2.97 lakh. According to IGF, the price was manipulated and rigged up to Rs100 and turnover was rigged up 19 times to 38 lakh shares. The price came down to Rs76 after the public issue. On Friday, the stock closed at Rs83.10 on the BSE.

In the case of the OBC public issue, against the quota of 2.03 crore shares, individual investors applied only for 78 lakh shares, it added. The new shares of OBC are yet to be listed.
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Kotak to launch Lifestyle Fund
Mumbai: The Kotak Mahindra Mutual Fund is launching the Kotak Lifestyle fund, an open-ended growth fund which will invest in equity of companies that are likely to benefit by the changing lifestyle and rising consumerism in the country.

The new scheme will predominantly invest equity and equity-related instruments across industries and companies, which are expected to benefit from the rising household spending. The scheme may also invest in debt and money market instruments, according to the offer document.

The fund would invest 65-100 per cent in equity and equity-related instruments. It can also invest up to 35 per cent in debt and money market instruments. The Kotak Lifestyle Fund would be available in both the growth and dividend options.

The offer document has been filed with the SEBI and is awaiting clearance. It may be recalled that last year, Kotak Mutual Fund had launched the Kotak Global India Fund, which was to invest in Indian companies that are globally competitive. The IPO had closed at Rs360 crore, but the fund has now shrunk to Rs202 crore.
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Nandan Exim to float Rs.12 crore IPO
Mumbai: Nandan Exim Ltd is all set to enter the capital market with an initial public offer to raise Rs12 crore in order to finance its capacity expansion. It will issue 60 lakh shares of Rs10 each at a premium of Rs10, with the issue will open on May 12 and close on May 20.

Post-issue, the promoters will hold 56.83 per cent of the enhanced equity capital of 1.39 crore equity shares of Rs10 each. The issue is lead managed by Centrum Capital.

The denim facility's project cost of Rs63.10 crore has been funded through term loans of Rs38.83 crore from State Bank of India, the Oriental Bank of Commerce and UCO Bank, while Rs3.5 crore has come in from promoters and Rs8.7 crore through internal accruals and group company commitments.

It has already installed 80 of the 96 looms. The facility, to be operational in June 2005, will produce 140 lakh metres of denim and 104 lakh meters of grey cloth annually.
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